Return of Bradford & Bingley and NRAM Limited to private ownership
On 26 February 2021, UK Asset Resolution (UKAR) agreed the sale of the issued share capital and remaining mortgage and loan portfolios of Bradford & Bingley plc and NRAM Limited and their subsidiary companies in a transaction worth around £5 billion. The buyer comprised a consortium of Citibank and Davidson Kempner, with funding provided by PIMCO.
This was a particularly significant sale as it brings to a close the government’s ownership of the assets acquired from its interventions in Northern Rock and Bradford & Bingley during the financial crisis of 2007-08, with the taxpayer fully repaid.
UKGI worked with both UKAR and HM Treasury on the sale, providing expertise to help devise and implement a strategy that delivered government’s objectives and achieved value for money.
In addition to returning taxpayer funds to the Exchequer, a key consideration for the sale was the continued fair treatment of customers, as it has been in previous sales. The transaction results in a change in ownership of B&B and NRAM but does not involve any of their 29,000 customers moving to a new lender. There will be no changes to the terms and conditions of any loans as a result of this transaction and borrowers will continue to receive the same protections for the lifetime of their mortgage as they currently receive under UKAR ownership.