The Chancellor today announced further sales of mortgage assets which are held by the state.
In the Budget, George Osborne told the House of Commons: “We have already sold the branches of Northern Rock; and raised £9 billion from Lloyds shares. Now we go further.
“Today I can announce that we are launching a sale of £13 billion of the mortgage assets we still hold from the bailouts of Northern Rock and of Bradford and Bingley.
“Lloyds Bank has returned to profit and is paying a dividend – so we can continue our exit from that bailout too. We will sell at least a further £9 billion of Lloyds shares in the coming year.”
As well as announcing a major sale of assets held from the forced nationalisation of Northern Rock and Bradford & Bingley plc, UK Asset Resolution (UKAR) is to explore potential options for the sale or outsourcing of its mortgage servicing activities.
The government’s central estimate, certified by the OBR, is that these sales of Lloyds shares and UKAR assets are expected to raise approximately £20 billion in 2015-16.