Sale of Northern Rock mortgages.
Chancellor George Osborne has authorised a record-breaking £13 billion sale of mortgages acquired from the Northern Rock by the government during the financial crisis, this is the largest ever financial asset sale by a government in Europe.
The mortgages, which were originally owned by Northern Rock are being sold by UK Asset Resolution (UKAR) to Cerberus. The proceeds from the sale will be used to pay down the national debt.
Chancellor of the Exchequer, George Osborne reportedly said: “Today marks another major milestone in clearing up the mess left by the financial crisis, with the sale of former Northern Rock mortgages.
“The sale, which raises £13 billion for the British taxpayer, is the largest ever sale of financial assets by a British government, and we are now clear that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis.
“The highly competitive process, unprecedented scale, and the fact that these mortgages have been sold for almost £300 million more than their book value demonstrates the confidence investors have in the UK, which has only been made possible by the success of our long term plan.
“A key consideration for UKAR in selecting the successful bidder was the treatment of customers. There will be no changes to the terms and conditions of the mortgages sold. Customers do not need to take any action.”