Government is set to recoup the final £5.3bn in an outstanding loan to Bradford & Bingley that was part of the 2008 Financial Services Compensation Scheme. A group of investors led by Barclay’s Bank is set to purchase two mortgage portfolios to complete the sale.
In 2010, UK Asset Resolution owned a total of £116bn in closed loan books. Today, following previous sales, those owned by UKAR have been reduced to £14bn.
In total, Bradford & Bingley received £23.7bn in SAR payments between 2008 and 2009 according to the records in our database. These payments effectively nationalised the mortgage assets of Bradford & Bingley while the rest of its assets were purchased by Santander Group.
Of the forthcoming sale, Chancellor Philip Hammond said:
We are determined to recover the money the taxpayer invested during the financial crisis as soon as we can. The sale of these Bradford & Bingley loans is yet another significant step in putting the crisis behind us.