News story

Final completion of record-breaking £13 billion sale of former Northern Rock mortgages

Economic Secretary confirms the completion of the record-breaking sale of former Northern Rock mortgages announced in November 2015.

The record-breaking £13 billion sale of former Northern Rock mortgages was completed today and the government received the final £520 million from Cerberus as part of the conclusion of this sale.

The mortgages, which were originally owned by Northern Rock and were acquired by the government during the financial crisis, were sold by UK Asset Resolution (UKAR) to Cerberus.

The sale, authorised by the Chancellor and announced on 13 November 2015, is the largest ever financial asset sale by a government in Europe.

UKAR sold this portfolio of mortgages for £280 million more than their book value.

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, and today’s sale means that the government has exited over 85% of the assets of the former bank.

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.

Economic Secretary to the Treasury, Harriett Baldwin said:

Today marks another major milestone in clearing up the mess left by the financial crisis, with the government completing the sale of former Northern Rock mortgages.

The sale, which has raised £13 billion for the British taxpayer, is the largest ever sale of financial assets by a British government. Today’s receipt of the final funds from this sale mean that we now have even further confidence that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis.