‘Bad bank’ sell-off likely to be complete by 2021

Britain’s so-called “bad bank” hopes to complete the winding-down of the mortgage books of failed lenders Northern Rock and Bradford & Bingley within three years.

UK Asset Resolution (UKAR), which was formed in 2010 to manage the failed bank assets in the wake of the financial crisis, said yesterday that it was “probable” it could complete the sell-down by 2021.

It has been working with advisers on how to offload the remaining assets, having seen them shrink by 83 per cent, or some £96 billion, since being set up.

UKAR said it had cut the balance sheet by £14.5bn to £17.2bn in the year to the end of March. With a further £5bn sold off in April and the sale of some £900 million in equity release mortgages, which is expected to complete later this year, customer balances are poised to fall below £11bn.

Boss Ian Hares said: “I am pleased that we have continued to make good progress in achieving our objective.”