UK Asset Resolution (UKAR) has announced that it has now repaid its £48.7 billion taxpayer loan. The loan was not expected to be repaid until the mid-2020s but has been able to do so more quickly by selling off packages of loans to private equity buyers.

UKAR which incorporates Bradford & Bingley was created in October 2010 and since then it has cut its balance sheet by £104.4bn, including £43.5bn of customer loan repayments and £37.4bn of asset sales. It now has 140 staff and just £5.5bn of mortgages left, 55% of which are buy-to-let mortgages.

In its latest results, the balance sheet showed a reduction of £8.4bn to £11.4bn following the sale of four asset portfolios with total number of customers falling by 96,000 to 35,000 with lending balances down to £5.5bn with more than 92% of these are loans performing well.

UKAR UK Chief Executive Ian Hares said “I am delighted that, in under ten years, we have been able to repay in full the Government loan of £48.7 billion. The final payment followed the completion of the sale of the two NRAM portfolios. In turn we’ve been able to reduce and simplify our Balance Sheet which is 94% smaller since formation. Looking forward, we are focussed on the disposal of the remaining Government investments in NRAM and B&B whilst ensuring that customers are appropriately protected.”