Daily Mail

£11bn loans from failed lender sold


AN £11.8bn slice of mortgages once owned by failed lender Bradford & Bingley has been sold as the Government seeks to return cash to taxpayers.

The former building society collapsed at the height of the financial crisis, forcing ministers to stage a rescue.

State-owned UK Asset Resolution assumed responsibi­lity for B&B assets along with a loan book which had belonged to bust bank Northern Rock.

It has been gradually selling them to private companies since the end of the recession to pay back the cash used for the bailout. The latest deal saw 104,000 buy-to-let mortgages bought by insurer Prudential and funds managed by Blackstone. They are held by 57,000 customers on an average interest rate of 2pc.

These landlords’ payments will not be affected, but they will be contacted to explain the ownership change.

The deal leaves UKAR with £12.7bn of B&B loans and £9.77bn from Northern Rock.

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