THE Bingley-based holding company behind failed lenders Bradford & Bingley and Northern Rock Asset Management has repaid £13.1 billion to the Government in loans in six months.

UK Asset Resolution (UKAR), which employs 163 people from its base in Croft Road, Crossflatts and a further 1,000 people for Computershare, paid back £13.1bn, which includes £11bn of the Financial Services Compensation Scheme (FSCS) debt. This brings the total repayment to £36.8bn since UKAR was formed in October 2010.

This means 76 per cent of the Government loans have now been repaid.

UKAR bosses predict it will take a further “two or three years” to pay off the remaining 24 per cent of this loan, depending on the financial market.

The FSCS loan was partly paid off this year by the sale of two separate B&B asset portfolios to Prudential, with funds managed by Prudential. UKAR also launched a further sale of assets, which, subject to market conditions, are expected to repay the loan in full.

UKAR yesterday announced its half year results for the six months up to September 30, also showed its balance sheet was reduced by a further £13.2 billion, which brings the total reduction to £94.7bn since it was formed in 2010.

These figures put UKAR’s pre-tax profit to £238m.

The bank completed a deal with software and financial services provider Computershare to take over its mortgage servicing activities.

Ian Hares, UKAR chief executive, said: “In the first half we finalised a major sale of assets and, subsequently, we have launched the next stage of the asset sales programme designed to repay the remaining FSCS debt.

“These are major steps towards realising our objective of reducing the balance sheet while continuing to maximise value for the taxpayer.

“It is pleasing that we continue to see high levels of service delivered for our customers.

“We are very pleased with the results. It is very hard to say when the loan repayments will be completed.

“It is quite feasible that it will take a further two or three years, but it is very much dependant on market conditions. We are making good progress.”

UKAR also has a total of 129,000 mortgage customers, with 69,000 with B&B and the remaining 60,000 with NRAM.

It revealed more than 94 per cent of its customers are up to date with their mortgage repayments.