UK Asset Resolution sells Northern Rock loans for £4.9bn
The UK Government’s “bad bank”, which was set up in the wake of the financial crisis, has sold £4.9bn of former Northern Rock loans to Citi.
UK Asset Resolution, which took on the closed mortgage books of Northern Rock and Bradford and Bingley after the crash, said that the fair treatment of customers was a “key consideration” in selecting the buyer.
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The latest sale reduces Ukar’s balance sheet to £8bn, a reduction of 90 per cent since its formation.
The government said in the last budget that it plans to sell the rest of Ukar’s assets by the end of March next year.
Ian Hares, chief executive officer, said: “This is a significant step in the reduction and simplification of our balance sheet.
“When complete, this sale will reduce UKAR’s balance sheet to £8bn, a 93 per cent reduction since formation.
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“Looking forward, we are now focused on releasing the government from its remaining investment in NRAM and Bradford & Bingley.”
In September insurance giant Rothesay Life bought an £860m equity release portfolio from Ukar, and the company sold £5.3bn of Bradford & Bingley assets to an investor group led by Barclays last April.