UK Asset Resolution confirms £5.3bn sale of Bradford & Bingley assets

Completion is expected within the next few weeks and will enable total loan repayments of £5.3bn to the Treasury, which includes the remaining £4.7bn of the Financial Services Compensation Scheme (FSCS) loan. That follows the repayment of £10.9bn in 2017 and means that the £15.65bn FSCS loan extended to Bradford & Bingley when it was nationalised in 2008 will be repaid in full.

The sale is based on the portfolio position as at 30 September 2017, from which point the purchaser will acquire the risks and rewards of ownership of approximately 45,000 Bradford & Bingley and Mortgage Express mortgages.

UKAR confirmed there will be no changes to the terms and conditions of the loans for customers. The mortgages will continue to be administered by the same company and customers do not need to take any action.

Those included in the transaction will be contacted in due course to explain the change in ownership, UKAR said.

Ian Hares, chief executive of UKAR, said: “When complete, this sale will reduce UKAR’s balance sheet to £14.5bn, an 87% reduction since its formation. The transaction delivers against our overarching objective to develop and execute divestment strategies which protect and maximise value for the taxpayer whilst treating customers fairly.”