Live updates

Government sells £13 billion of Northern Rock mortgages

Credit: PA

The Government has sold £13 billion of Northern Rock mortgages in what is the largest ever financial asset sale by a government in Europe.

The mortgages have been sold to investment firm Cerberus Capital Management.

UK Asset Resolution (Ukar), the "bad bank" created in 2010 to run down the loans in Northern Rock and Bradford & Bingley, said the sale would include residential mortgages and unsecured loans from Northern Rock Asset Management.

The Treasury said all proceeds will be used to pay down the national debt.

The sale, which raises £13 billion for the British taxpayer, is the largest ever sale of financial assets by a British government, and 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.

The highly competitive process, unprecedented scale, and the fact that these mortgages have been sold for almost £300 million more than their book value demonstrates the confidence investors have in the UK, which has only been made possible by the success of our long term plan.

– Chancellor of the Exchequer, George Osborne

The Treasury added there will be no changes to the terms and conditions of the mortgages sold and customers do not need to take any action.


Labour: Osborne failed to mention Northern Rock payout in Autumn Statement

George Osborne’s smoke and mirrors in last week’s Autumn Statement continue to be exposed.

Now the Treasury has admitted that public sector net borrowing will be £270 million higher this year as a result of mistakes at Northern Rock.

But this figure was not revealed to parliament last week or in the official forecasts, even though the Treasury has admitted it knew about this problem in October.

It’s time George Osborne started being honest with people.

No amount of trickiness with the figures can disguise the fact that his failure to deliver jobs and growth means he is borrowing billions more than he planned.

– Shadow Treasury Minister Chris Leslie MP


  1. Chris Choi

Virgin Money retires Northern Rock brand

Northern Rock's Liverpool branch Credit: Peter Byrne/PA Wire

The banking chain Northern Rock finally died today. Virgin Money, which bought the bank last November in a deal worth £747 million, has decided to terminate the brand.

A spokesman for Virgin Money said: “We have been working hard to integrate the Virgin Money and Northern Rock businesses this year.

"All of the branches have been transformed into Virgin Money Stores [and] the company has been renamed as Virgin Money plc."

Northern Rock: Taxpayers could lose £2bn

A sign is seen above a Northern Rock bank branch Credit: Reuters

The taxpayer may lose around £2bn after the assets of collapsed bank Northern Rock are wound down, The National Audit Office has said.

The public spending watchdog also said taxpayers lost approximately £480m when Northern Rock PLC was sold in 2011.

The early sale of Northern Rock to Virgin Money was the "best way" to protect the taxpayer from greater losses, the report from the spending watchdog said. Northern Rock was saved in 2008 at the beginning of the financial crisis.