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Bradford and Bingley sale of mortgage assets resumes after summer hiatus

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  • 25/10/2016
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Bradford and Bingley sale of mortgage assets resumes after summer hiatus
The sale of Bradford and Bingley mortgage assets, currently held by the Government, has officially been restarted by UK Asset Resolution (UKAR).

The programme of sales has been designed to raise funds for Bradford & Bingley to repay £16bn worth of debt to the Financial Services Compensation Scheme.

It comes after The Treasury gave UKAR the go ahead to begin sale proceedings again earlier this month, after it was paused during the summer amid uncertainty around the Brexit vote.

The process of the sale will include some of the UK’s biggest banks to provide financing support and is expected to conclude before the end of 2017/18, dependent on market conditions.

Chancellor Phillip Hammond, who confirmed the sale had been restarted, said he was determined to do everything possible to ensure taxpayers got their money back.

UKAR was set up in the wake of the 2008 crash to manage both Bradford & Bingley and Northern Rock, with £13bn of residential mortgages held by Northern Rock already sold to American private equity firm Cerberus in 2015.

Before the crash Mortgage Express, which was owned by Bradford & Bingley was once a key lender in the market for subprime and buy to let mortgages.

But after the financial crisis it was nationalised with its savings and branch business sold to Santander and Mortgage Express was closed permanently.

 

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