Taxpayers repaid £1.9bn from Bradford & Bingley operator

THE group which runs the mortgage operations of former high street banks Bradford & Bingley and Northern Rock said it had repaid £1.9bn to taxpayers in the first half of 2013.

In its half year results to June 30, UK Asset Resolution (UKAR) said its mission is to “maximise value for the taxpayer.”

Bradford & Bingley was nationalised in 2008 with the branches sold on but the mortgage book was retained and managed by state-owned UKAR which also operates part of the old Northern Rock business.

“Having integrated the two businesses, our objectives are to optimise the balance sheets to facilitate the orderly repayment of the government loans, whilst serving our customers well and treating them fairly,” it said.

Payments of £1.9bn made to taxpayers included £1.3bn loan repayments.

Mortgage accounts three or more months in arrears, including possessions, have reduced by 17% to 21,332 since the start of 2013, while it said underlying profit before tax increased by 10% to £529m.

UKAR said it has completed the integration of its IT infrastructure, which it believes will deliver significant cost savings in the future.

It also announced the £400m sale of the NRAM standalone unsecured personal loan book.

Richard Banks, UKAR chief executive, said: “UKAR has continued to make good progress in the first half of this year, with payments of £1.9bn made to taxpayers.

“It is also pleasing to see the continued reduction in arrears due to the dedication and professionalism of colleagues proactively working with our customers to help them achieve the right outcomes.”