Govt completes sale of £13bn Northern Rock book

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The Government has completed selling its £13bn book of former Northern Rock mortgages to US investment firm Cerberus Capital Management.

Cerberus made the final payment of £520m today, concluding the largest-ever financial asset sale by a European government.

The mortgages were originally owned by Northern Rock and were bought by the government during the financial crisis.

UK Asset Resolution then sold them to Cerberus.

A government statement says UK taxpayers will get back more from Northern Rock than was paid to bail them out during the financial crash.

Economic Secretary to the Treasury Harriett Baldwin said: “Today marks another major milestone in clearing up the mess left by the financial crisis, with the government completing the sale of former Northern Rock mortgages.

“Today’s receipt of the final funds from this sale mean that we now have even further confidence that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis.”