Rothesay Life acquire Bradford & Bingley equity release protfolio9th October 2018 Latest News
The government has agreed to the £860m sale of an equity release mortgage portfolio belonging to Bradford & Bingley (B&B) and NRAM Limited (formerly part of Northern Rock), which were acquired during the financial crisis.
Following a competitive auction, the mortgages have been sold to Rothesay Life, a Financial Conduct Authority and Prudential Regulation Authority regulated firm. There have been no changes to the terms and conditions of the mortgages sold and borrowers are not required to take any action.
The proceeds from the deal will be used to pay down the national debt. The mortgages have been sold by UK Asset Resolution (UKAR), the holding company that was established to bring together the government-owned businesses of Northern Rock and B&B.
As a result of this transaction, UKAR expects to repay approximately £1 billion of the government loan which is made up of a number of components in addition to the actual sales proceeds. Following repayment, UKAR will have repaid 94% of its loans from the government. Following this transaction, UKAR now owns c.£13 billion worth of assets, reduced from £21 billion in September 2017 and from £116 billion in 2010.
The Chancellor, Philip Hammond said:
‘We’re continuing to recover the money the taxpayer committed during the financial crash, and the sale of these loans moves us one step closer. The proceeds of this sale will go towards reducing our national debt.’