The\u00a0Government\u00a0has announced\u00a0that UK Asset Resolution (UKAR) which was created in 2010 to manage the loan books of NRAM and Bradford and Bingley, will be selling approximately 39,000 residential mortgages and 27,000 unsecured loans worth \u00a34.9 billion to investment bank Citi, following a competitive auction.<\/p>\n
The Treasury has confirmed that it has agreed a \u2018non-negotiable package of consumer protections\u2019 to ensure customers terms and conditions remain\u00a0exactly\u00a0the same.\u00a0\u00a0NRAM borrowers have\u00a0been advised\u00a0that there is no need to take\u00a0action\u00a0and\u00a0that\u00a0mortgage and loan repayments should\u00a0be made\u00a0as usual.<\/p>\n
“A key element in selecting the successful bidder was the treatment of customers. All bidders were required to agree to a non-negotiable package of customer protections before their bid\u00a0was considered”\u00a0said Chancellor of the Exchequer Philip Hammond.<\/p>\n
Citi has confirmed\u00a0that new mortgage deals will not be offered to customers,\u00a0although\u00a0borrowers\u00a0that\u00a0want\u00a0to remortgage to another\u00a0lender\u00a0will face no\u00a0financial penalties or early repayment charges if they choose to change lender at this time.<\/p>\n
However,\u00a0customers\u00a0could\u00a0be affected by future changes in the standard variable rate, which\u00a0might\u00a0leave some stuck paying higher\u00a0rates\u00a0if they cannot pass the affordability checks\u00a0and switch lenders.\u00a0However,\u00a0the Treasury has said that any new SVR must be linked to the SVRs of\u00a0regulated active\u00a0lenders (e.g. high street banks and building societies),\u00a0affording some protection from excessive\u00a0rate\u00a0increases in the future.<\/p>\n
Chancellor Philip Hammond said:\u00a0 “Today\u2019s sale enables us to recover the full amount taxpayers loaned to Northern Rock and Bradford & Bingley, helping us pay down our debts and strengthen our finances for the future.”<\/p><\/blockquote>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Sixty-six thousand\u00a0mortgages and unsecured loans\u00a0originally\u00a0held by NRAM, formerly part of failed lender Northern Rock, are to be sold. The\u00a0Government\u00a0has announced\u00a0that UK Asset Resolution (UKAR) which was created in 2010 to manage the loan books of NRAM and Bradford and Bingley, will be selling approximately 39,000 residential mortgages and 27,000 unsecured loans worth \u00a34.9 billion to… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":21289,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26,6],"tags":[168,96],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/4023506"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=4023506"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/4023506\/revisions"}],"predecessor-version":[{"id":6097608,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/4023506\/revisions\/6097608"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/21289"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=4023506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=4023506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=4023506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}