UK Asset Resolution has sold two mortgage portfolios to Citi, meaning that the taxpayer-funded loan of nearly £50bn extended to help ease the impact of the financial crisis will soon be repaid to the treasury.
UKAR was formed nearly a decade ago to hold loans extended by Northern Rock and Bradford & Bingley, which were both nationalised as the financial crisis took hold.
It has been selling bundles of mortgage loans to private equity buyers since, with the last two packages going for £4.9bn.
The holding company says that there will be no changes to the terms and conditions of these latest to be sold, totalling around 66,000 owner-occupier loans, and that borrowers’ ability to remortgage will not be affected.
UKAR chief executive Ian Hares comments: “This is a significant step in the reduction and simplification of our balance sheet.
“We are now focussed on releasing the government from its remaining investment in NRAM and Bradford & Bingley plc.”