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Govt plans sale of mortgage loans

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
09/03/2017

Chancellor George Osborne has announced plans to sell off a further £13bn of mortgage loans held by the government.

These loans were undertaken by the former Northern Rock and Bradford and Bingley banks and were purchased by the government in the banking bailouts of the last decade.

These are currently held by the arm’s length organisation UK Asset Resolution (UKAR), which was established in October 2010.

Osborne announced during his Budget speech that £13bn of these loans would be sold.

Last October UKAR completed the sale of 27,000 mortgages to Commercial First, a consortium led by US bank JP Morgan. It had also sold loans to Virgin Money and private equity firm JC Flowers previously.

The Chancellor also revealed plans to create a new Help to Buy ISA, offering government assistance to those looking to save a deposit.

“It is as simple as this: we will work hand in hand to help you buy your first home. This is a Budget that works for you,” he said in his speech.