UK Asset Resolution (UKAR), the holding company for defunct Bradford & Bingley and Northern Rock Asset Management, said it had sold £2.7bn of performing mortgages to Commercial First, a consortium led by JP Morgan.
The sale will turn a £55m profit for state-backed UKAR. “The continued fair treatment of customers was a key consideration for UKAR in selecting the winning bid,” UKAR said. “The sale will not affect the terms and conditions of the mortgages in this portfolio and the c.27,000 customers impacted will be contacted directly.”
The transfer of the mortgages to the Commercial First consortium will be phased over the next 12 months, and comes as UKAR pursues a mandate to run down the closed books of Bradford & Bingley and Northern Rock Asset Management.