Mortgages  

TSB takes over former Northern Rock mortgages

TSB takes over former Northern Rock mortgages

TSB has completed the legal transfer of 27,000 former Northern Rock mortgages and loans from UK Asset Resolution.

TSB has created a new brand called Whistletree, which has been purpose-built to manage the mortgage accounts.

Padraig Carton, customer service operations director at TSB, said, “We are delighted to welcome these customers to Whistletree from today (18 July).

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“Whistletree will provide a secure, long-term home for these mortgages and loans based in the UK.

“Supporting hardworking people and helping local communities right across Britain to thrive is absolutely at the heart of what TSB was set up to do. Whistletree is a natural extension of this.”

Some 27,000 mortgages and loans will transfer to Whistletree, a reduction from the anticipated 34,000 mortgages which is due to homeowners naturally redeeming their mortgage or switching lender.

The mortgages, which were originally owned by Northern Rock and acquired by the government during the financial crisis, were sold to private equity firm Cerberus Capital Management by the state-owned limited company UK Asset Resolution.

The sale, authorised by then-chancellor George Osborne in November, was the largest ever financial asset sale by a government in Europe, with UKAR selling the portfolio for £280m more than their book value.

TSB has not disclosed the monetary value of the mortgages, or how much it has paid for them, but speaking in Parliament last year then-economic secretary to the Treasury Harriett Baldwin said the company had agreed to buy £3.3bn of the loans, which numbered 125,000 in total.

The terms and conditions of the existing loan agreements will remain unchanged.

Customers transferring to Whistletree are being informed by letter this week with full details of what action, if any, they need to take.

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Kevin Dunn, senior partner at Leicester-based Furnley House, said: “I wouldn’t say borrowers should be concerned if their mortgage has been sold, particularly if it is to a reputable provider like TSB.

“They will probably have more choice now because they can choose from TSB products without further underwriting.”