View more on these topics

US investment firm leads race to buy Northern Rock loan book


A US investment firm has emerged as the preferred bidder to buy a £13bn tranche of Northern Rock mortgages.

The Sunday Times reports New York-based Cerberus Capital Management has teamed up with Morgan Stanley as part of its bid for the loan book.

The investment fund has been caught up in a bribery scandal involving its acquisition of a $5.7bn (£4.2bn) loan book from Irish “bad bank” Nama.

The Northern Rock loan book is made up of more than 131,000 home loans, including Northern Rock’s Together mortgages which lent to borrowers at 125 per cent LTV.

UK Asset Resolution, which manages the loans, and Morgan Stanley declined to comment. Cerberus was unavailable for comment.



US banks join forces to buy £13bn of Northern Rock assets

Citigroup has reportedly joined a bid for £13bn-worth of mortgage assets owned by UK taxpayers. Sky News reports that Citi has joined forces with Goldman Sachs and units of Blackstone, TPG Capital and New York-based hedge fund Och-Ziff for mortgage securitisation vehicle Granite, which is now part of UK Asset Resolution. UKAR is the holding […]


Court of Appeal overturns £261m Northern Rock redress case

The Court of Appeal has reversed a decision that that would have seen 43,000 Northern Rock borrowers paid total compensation of £261m. In December, the High Court ruled that Northern Rock Asset Management should pay an average of £6,000 in refunded interest to borrowers who took out the infamous “Together Mortgage”. This allowed consumers to […]


RBS looks to buy £13bn Govt mortgage book

Royal Bank of Scotland is reportedly close to a deal to buy more than £13bn of Government-backed mortgages. The bank, which is still backed by the taxpayer, is contending with US hedge fund Cerberus and TSB-owner Sabadell to seal the deal, according to the Sunday Times. The Government acquired the home loans following the collapses […]


Govt unveils plans for £2bn Lloyds retail offer

The Treasury has revealed its plans to offer at least £2bn of Lloyds Banking Group shares to retail investors. The retail offer will be launched in the spring, with applications available online or by post. The Government says it plans to sell down its remaining stake in Lloyds in the coming months. Members of the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment