Blackstone eyes £6bn Bradford & Bingley mortgage book

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Private equity firm Blackstone is in talks to buy a £6bn book of residential and buy-to-let loans from Bradford & Bingley, GMAC-RFC and Kensington Mortgages.

The UK Government plans to auction off the mortgage book later this year, according to Sky News.

OneSavings Bank, Och-Ziff and TPG are also expected to bid for the B&B book.

The Treasury had originally earmarked £3bn of loans to be sold this year but has recently upped its estimate.

Most of the £6bn portfolio will be B&B loans, but a small tranche will come from Government-owned GMAC and Kensington loans.

Morgan Stanley will oversee the sale and has contacted possible bidders.

Three months ago Blackstone and Prudential bought £11.8bn of Bradford & Bingley loans.

The Government took over B&B’s mortgage book in a part-nationalisation of the bank after the credit crisis.