£5bn sale of Rock loans

A TRANCHE of mortgages worth £4.9bn once owned by the failed bank Northern Rock has been sold to raise cash for taxpayers.

US investment firm Pimco and Citibank picked up the 66,000 loans from stateowned UK Asset Resolution (UKAR), which was set up to look after Northern Rock and Bradford and Bingley customers, rescued after the banks went bust. The loans are being sold to repay the £48.7bn which was spent by taxpayers. UKAR insisted that customers will not be affected by the latest round of sales, and will have the same protections as before.

The deal leaves UKAR with £8bn of loans on its books, down 93pc since it was formed in 2010.