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UKAR readying to sell another £5.5bn of taxpayer-backed mortgages – reports
Investment firms are lining up to buy another multi-billion pound slice of mortgages taken over by UK taxpayers at the height of the financial crisis, according to reports.
UK Asset Resolution (UKAR) is trying to sell £5.5bn of loans, with Pacific Investment Management Co (Pimco), Cerberus Capital Management, Och-Ziff, and M&G Prudential among the prospective buyers, Sky News reported.
The sale could take place as soon as next month.
Former Northern Rock and Bradford & Bingley mortgages are among the loans held by UKAR.
Around £11.8bn worth of loans were sold in March last year by UKAR to Prudential and Blackstone and managed by Computershare.
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Many of these customers are now being transferred to Rosinca Mortgages and Jasper Mortgages, two brands created by Computershare.
And Cerberus bought a £13bn portfolio of mortgages from the government in November 2015.
Proceeds from sales are used to pay back Treasury loans.