On 13 November 2015, the Chancellor authorised a £13 billion sale of mortgages acquired by the government from Northern Rock during the financial crisis. The parties to the sale were the seller UK Asset Resolution to the buyer Cerberus, in the largest ever financial asset sale by a government in Europe.
The scale of this transaction means that taxpayers will get back more money from Northern Rock than they were forced to put in the financial crisis ‘bail out’. The government has now sold more than 85% of the assets of Northern Rock. George Osborne, the Chancellor of the Exchequer said:
“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.”
UK Asset Resolution is keen to stress that there will not be any changes to the terms and conditions of the mortgages sold by Northern Rock. The 125,000 customers affected do not need to take any action and their mortgage repayments will not change.