Loans sale to return 拢4.9 billion to UK taxpayers
皇冠体育app Chancellor has announced a 拢4.9 billion sale of loans acquired by the taxpayer during the financial crisis.
A 拢4.9 billion sale of loans acquired by the taxpayer during the financial crisis has been announced by the Chancellor today (Tuesday 2 April).
皇冠体育app sale of NRAM (formerly part of Northern Rock) mortgages and unsecured loans was approved following a highly competitive auction.
Two portfolios of mortgages will be sold to Citi, an investment bank, and the majority of financing is being provided by PIMCO, a bond manager.
皇冠体育app sale marks a major milestone in the plan to recover taxpayers鈥� money and pay off the country鈥檚 debt, while also protecting the rights of customers with these mortgages.
皇冠体育app Chancellor of the Exchequer Philip Hammond said:
Through our careful oversight of the country鈥檚 finances we are continuing to recover significant amounts of money that were loaned during the financial crash.
Today鈥檚 sale enables us to recover the full amount taxpayers loaned to Northern Rock and Bradford & Bingley, helping us pay down our debts and strengthen our finances for the future.
A key element in selecting the successful bidder was the treatment of customers. All bidders were required to agree to a non-negotiable package of customer protections before their bid was considered.
Customers will therefore see no changes to the terms and conditions of their mortgages, with the same protections they currently receive under UKAR鈥檚 ownership today. Borrowers will be contacted in due course to explain the change in ownership.
皇冠体育app proceeds from this sale will be used to fully repay the loans provided by the Treasury to NRAM and Bradford & Bingley plc (B&B) during the financial crisis and reduce public debt.
This sale simplifies the book of assets held by UK Asset Resolution (UKAR), the holding company for NRAM and B&B, bringing the government closer to the final disposal of NRAM and B&B, as announced at Autumn Budget 2018.
B&B鈥檚 and NRAM鈥檚 closed loan books are managed by UKAR on behalf of the taxpayer. Following this transaction, UKAR now owns c. 拢8 billion worth of assets, down from c. 拢14 billion in September 2018 and from 拢116 billion in 2010.