Credit, Collections & Insolvency News
Bradford & Bingley plc (B&B), part of UK Asset Resolution Limited (UKAR), has confirmed that it has agreed to sell two separate portfolios of buy to let and residential owner-occupied mortgages to an investor group led by Barclays Bank PLC for a total of £5.3bn.
Financial completion is expected within the next few weeks and will enable total loan repayments of £5.3bn to HM Treasury, which includes the remaining £4.7bn of the Financial Services Compensation Scheme (FSCS) loan. This follows the repayment of £10.9bn in 2017 and means that the £15.65bn FSCS loan extended to Bradford & Bingley when it was nationalised in 2008 will have been repaid in full.
The sale is based on the portfolio position as at 30 September 2017, from which point the purchaser will acquire the risks and rewards of ownership of approximately 45,000 Bradford & Bingley and Mortgage Express mortgages.
A key consideration in selecting the successful bidder was the continued fair treatment of customers and there will be no changes to the terms and conditions of the loans as a result of this transaction. The mortgages will continue to be administered by the same company, providing continuity of service. Customers do not need to take any action. Those included in the transaction will be contacted in due course to explain the change in ownership.
Ian Hares, Chief Executive Officer, said “This marks a significant moment in B&B’s history with all £15.65bn returned to the FSCS and ultimately the taxpayer. When complete, this sale will reduce UKAR’s balance sheet to £14.5bn, an 87% reduction since its formation. The transaction delivers against our overarching objective to develop and execute divestment strategies which protect and maximise value for the taxpayer whilst treating customers fairly.”