Mortgages  

Govt completes final sale of Bradford & Bingley and Northern Rock

Govt completes final sale of Bradford & Bingley and Northern Rock
 Credit: REUTERS/Luke MacGregor

The government has completed the final sale of its Bradford & Bingley and Northern Rock assets.

HM Treasury said the final sale was a significant milestone in the work to achieve the government’s objective of returning the institutions to private ownership.

Total proceeds of the sale for the government will be around £5bn after the banks were nationalised in 2008.

The sale was approved after an auction process and will see Bradford & Bingley and NRAM, together with their remaining mortgages and loan portfolios, sold to a consortium comprising asset manager Davidson Kempner and Citibank.

John Glen, economic secretary to the Treasury, said: “This sale represents a major achievement. At last March’s budget we promised to finally return B&B and NRAM to private ownership and we have done just that.

“We are continuing to protect consumers while recovering significant amounts of the taxpayer money used to ensure financial stability during the financial crisis.”

The treatment of customers was a key element in selecting the successful bidder, the Treasury said.

All bidders were required to agree to a robust package of customer protections before their bids were considered on the basis of other factors.

The Treasury said customers did not need to take any action and could be “assured” that there would be no changes to the terms and conditions of any loans as a result of the transaction.

The announcement continued: “They will continue to receive the same protections for the lifetime of their mortgage as they do today, and their ability to remortgage will be unaffected.”

chloe.cheung@ft.com

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