New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About A week ago 73
UK Asset Resolution (UKAR) has today confirmed the sale of two separate Bradford & Bingley asset portfolios comprising performing Buy to Let loans for a total of £11.8 billion to Prudential plc and to funds managed by Blackstone.
Non-performing loans are where a scheduled mortgage payment has not been made for more than 90 days.
UKAR have confirmed the sale is based on the portfolio position as at 30 September 2016, from which point the buyers will acquire the risks and rewards of ownership of 104,000 loans originated by Bradford & Bingley and Mortgage Express.
It has been confirmed under treating customers fairly that terms and conditions for any Buy to Let mortgages sold will not be changed and that borrowers do not need to take any action and all affected customers will be contacted in due course to outline details concerning the change of ownership.
Chancellor Philip Hammond said, “The sale of these Bradford & Bingley assets for £11.8 billion marks another major milestone in our plan to get taxpayers’ money back following the financial crisis.
“We are determined to return the financial assets we own to the private sector and today’s sale is further proof of the confidence investors have in the UK economy.”
The sale includes repayment of £10.9 billion to the Financial Services Compensation Scheme of the £15.65 billion borrowed by the group and it is planned that a later sale of mortgage assets in March 2018 will repay the remainder.
UKAR CEO, Ian Hares said, “This sale of assets is a significant milestone in the phased repayment of the FSCS loan extended to Bradford & Bingley and when complete will reduce UKAR’s balance sheet to £22bn from £116bn in 2010 when it was formed. We are very pleased with the price achieved which delivers excellent value for the taxpayer. The transaction delivers against our overarching objective to develop and execute divestment strategies which protect and maximise value for the taxpayer whilst treating customers fairly.”
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