Government to Recoup £3 Billion in Sale of Bradford & Bingley Mortgage Loans

Pound notes folded into the shape of a house symbolize the UK governments bailout of the financial sector in 2008. The Government has just announced it will sell £3bn in home mortgages acquired from Bradford & Bingley.

SkyNews reports that the Government announced at the end of April 2017 that it will sell £3 billion in Bradford & Bingley mortgage loans in an auction that is likely to follow the June elections.

UK Asset Resolution, the organisation supervised by the Treasury that manages the assets bought during the 2008 Financial Services Compensation Scheme (FSCS), has appointed Morgan Stanley as auctioneer.

Financial analysts predict that the sale of the package of lower-quality buy-to-let and higher-value loan-to-let will earn £3 billion. Though this figure is a discount on the book value of the mortgages, but would still yield a considerable payout to the Treasury.

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