The UK Government has sold the £860 million mortgage portfolio owned by the collapsed lenders Bradford & Bingley and Northern Rock. The specialist life insurer, Rothesay Life, has bought the equity release loans.
Last week, Rothesay Life was in the lead to buy the equity release mortgages from UK Asset Resolution.
The UK Asset Resolution has said:
“Following a highly competitive auction, these mortgages will be sold to Rothesay Life, a Financial Conduct Authority and Prudential Regulation Authority regulated firm,”
“There will be no changes to the terms and conditions of the mortgages sold. Borrowers do not need to take any action.”
Moreover, it added that Britain’s national debt will be paid down by the proceeds from the sale.
Chancellor Philip Hammond has said:
“We’re continuing to recover the money the taxpayer committed during the financial crash, and the sale of these loans moves us one step closer.”
The UK Asset Resolution is a state firm that manages assets of firms which have fallen victim to the financial crisis. Following the sale, it owns £13 billion worth of assets. Indeed, this figure is down from the £21 billion in September 2017 and £116 billion in 2010. In fact, the UK Asset Resolution aims to be non-existent by 2021, hoping to have sold all of its assets.
Established in 2007, Rothesay Life is a life insurer that specialises in bulk annuities and other de-risking solutions. Defined benefit pension schemes and insurance companies are offered these solutions.
Moreover, it currently has £37 billion worth of assets under management and more than 750,000 end customers. Commenting on the sale, the company said:
“It is intended that the mortgages will continue to be administered by the same company (Computershare Loan Services), providing continuity of service.”
Furthermore, it said:
“Equity release mortgage customers do not need to take any action and will be contacted in due course to confirm the change of ownership.”
