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Govt completes sale of £13bn Northern Rock book


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.”



Northern Rock loans to be part of biggest securitisation since crash

US investment firm Cerberus Capital Management is set to launch Europe’s biggest mortgage-backed securitisation since the financial crisis. The bond is reportedly backed by £6.2bn worth of mortgages originated by Northern Rock, which had to be nationalised in 2008. Cerberus bought £13bn of NR mortgages off the Treasury in November. It has already sold £3.3bn […]

Andrew Tyrie Tory conf 2013.jpg

Treasury quizzed over Northern Rock assets sale

Treasury economic secretary Harriet Baldwin is facing questions from an influential committee of MPs over the sale of former Northern Rock assets. The Treasury announced a £13bn deal to offload a book of mortgages from the collapsed building society to US-based Cerberus Capital Management in mid-November. However, Treasury committee chairman Andrew Tyrie has now written […]


Treasury offloads £13bn Northern Rock mortgage book

The Treasury has announced a £13bn deal to sell a book of Northern Rock mortgages to US investment firm Cerberus Capital Management. The agreement to sell the mortgages, announced by UK Asset Resolution, means the Government has now disposed of over 85 per cent of the assets of Northern Rock. All proceeds from the sale […]


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