UK Asset Resolution has agreed to sell £465m of high quality NRAM mortgage assets to Virgin Money.
The holding company for both Northern Rock and Bradford and Bingley will continue to manage the assets until the transfer date, which is expected before the end of the year. Virgin Money will contact those affected before this date.
The chief executive of Virgin Money Jayne-Anne Gadhia says: “I am delighted to be able to welcome this new group of customers to Virgin Money and we will be making every effort to make the transition simple and straightforward for them.”
“This is an excellent acquisition for us. It is sensible deployment of some of our excess liquidity and allows us to grow our mortgage book with high quality mortgages. UKAR has confirmed that it intends to use the proceeds of the acquisition to further repay their government loan, in the best interests of taxpayers, and so this transaction offers a great example of our philosophy of making everyone better off.”
The sale is thought to represent approximately 1 per cent of the NRAM book held by UK Asset Resolution.
The acquisition is not expected to significantly impact the average LTV of Virgin Money’s mortgage book, which currently stands at 64 per cent.