UK Asset Resolution Limited (UKAR), the holding company for the government owned businesses of Bradford & Bingley plc (B&B) and Northern Rock (Asset Management) plc (NRAM), has agreed to sell NRAM’s portfolio of standalone unsecured personal loans.
The sale is being completed as two separate transactions, with performing loans being acquired by OneSavings Bank plc and the remainder of the portfolio being acquired by Marlin Financial Group Ltd.
The sale was based on the portfolio position as at end February 2013. The combined sales price will be £400m.
Net proceeds from the sale will go towards repayment of the NRAM government loan during the third quarter of 2013.
The full transfer of legal title and servicing of all these accounts will take place within the next six months. Once the transfer of servicing is complete, NRAM will have completely exited this part of its business. Until this point, NRAM remains responsible for servicing these loans.
UKAR said the sale will not affect the terms and conditions of the loans in this portfolio and the 140,000 customers associated with this sale will be contacted directly by NRAM and the new administrator at the time servicing responsibility transfers.
This action forms part of UKAR’s ongoing process to wind down the mortgage and loan books of both B&B and NRAM whilst maximising value for the taxpayer.