Bradford & Bingley mortgages to be sold off by 2018

Bradford & Bingley mortgages to be sold off by 2018

Mortages owned by the British government will be completely sold off by 2017 to 2018, HM Treasury has said.

Money raised by selling off these mortgages - bought at the height of the 2008 finanical crisis - will be used to pay off the debts their purchase incurred at the Financial Services Compensation Scheme and Treasury.

In today’s Budget the government said it has been exploring the sale of mortgages owned by UK Asset Resolution.

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It said: “Following the recent successful sale of £13bn of former Northern Rock mortgages, the Treasury, UK Financial Investments and UKAR have been exploring further sales of UKAR mortgages: in particular, a programme of sales designed to raise sufficient proceeds for Bradford & Bingley to repay the £15.65bn debt to the FSCS and, in turn, the corresponding loan from the Treasury.

“It is expected that this programme of sales will have concluded in full before the end of 2017 to 2018.”

But the government has added that any sales will be subject to market conditions and ensuring value for money.

In November the government sold £13bn sale of Northern Rock mortgages acquired during the financial crisis to US private equity firm Cerberus Capital Management.

Following the subprime mortgage crisis in 2008 Bradford & Bingley was nationalised and split up, with its deposits and branch network sold to the Santander Group.