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Lenders tee-up £17bn Bradford & Bingley financing deal

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Five British banks and a building society are reportedly offering around £17bn of financing in a bid to help the Government sell the remnants of Bradford & Bingley.

The Government has been seeking to dispose of assets acquired during the financial crisis, including auctioning a £13bn package of Northern Rock loans last year.

And now Sky News reports that six lenders are to present the Government with a proposal to establish a special purpose vehicle to house the loans ahead of a possible sale.

The banks – Barclays, HSBC, Lloyds, Santander and RBS – and Nationwide will reportedly offer £17bn of financing to the eventual purchasers of the loans as part of a project to end their own exposure to interest on the loans used to fund it during the financial crisis.

B&B interest last year alone totalled £400m, Sky News reports.

The Government bailed out B&B in 2008 at the height of the financial crisis, with its mortgage book, personal loan book, headquarters and wholesale liability coming into state ownership.

At the same time, Santander bought B&B’s retail deposit business and branches.

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