Bradford & Bingley operator repays £4bn to taxpayers

THE group which runs the mortgage operations of former high street banks Bradford & Bingley and Northern Rock today said it had repaid £4bn to taxpayers last year.

UK Asset Resolution said that it is confident of repaying taxpayers in full, despite still owing £43.4bn for the UK government’s bailout of the two banks in 2008.

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

UKAR said that mortgage accounts three or more months in arrears reduced by 23% to 25,581 last year while underlying profit before tax improved by 25% before increased interest payments to HM Treasury.

The group completed a review of PPI claims, refunding £159m to customers.
 
Richard Pym, UKAR chairman, commented: “In 2012, we completed the process of integrating B&B and NRAM, paid £4bn to the taxpayer and reduced three month mortgage arrears by an impressive 23%.

“When we launched UKAR in October 2010 we owed HM Treasury £48.7bn and by the end of 2012 that had reduced to £43.4bn.  We still have a long way to go, but it remains our expectation and determination to repay that debt in full.”