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Bidders circling for nationalised mortgage books

Northern Rock was nationalised in 2008. Picture: Getty

Northern Rock was nationalised in 2008. Picture: Getty

  • by DOMINIC JEFF
 

The state-owned “bad bank” that holds toxic assets from collapsed Northern Rock and Bradford & Bingley revealed it has received a number of offers for parts of the mortgage books since it sold a portfolio to Virgin Money last year for £465 million.

UK Asset Resolution (UKAR) says the mortgages are looking like better value as arrears have been reduced since they were taken into state ownership at the peak of the financial crisis.

It has reportedly received a number of “speculative offers” from private equity and other investment groups. Because of the growing value of the loans, the offers were not taken up but UKAR says that if the price is right, it will offload assets.

Britain’s “bad bank” repaid £4 billion to the UK government last year, chipping away at a total owed of more than ten times that amount.

Chief executive Richard Banks recently said he was “very confident” taxpayers would get back all the money the UK government spent on rescuing Northern Rock and Bradford & Bingley during the 2008 financial crisis.

 

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