Taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis, the government said.
The completion of the £13bn sale of former Northern Rock mortgages has been confirmed, with the government receiving the final £520m from Cerberus to conclude the sale.
The mortgages, which were originally owned by Northern Rock and acquired by the government during the financial crisis, have been sold by UK Asset Resolution (UKAR) to Cerberus.
The sale was authorised by the Chancellor and announced last November and is the largest ever financial asset sale by a government in Europe.
UKAR sold this portfolio of mortgages for £280m more than their book value.
A key consideration for UKAR in selecting the successful bidder was the treatment of customers. There will be no changes to the terms and conditions of the mortgages sold and customers do not need to take any action.
Economic secretary to the Treasury, Harriett Baldwin, said: “Today marks another major milestone in clearing up the mess left by the financial crisis, with the government completing the sale of former Northern Rock mortgages.
“Today’s receipt of the final funds from this sale mean that we now have even further confidence that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis.”