AN Investor group led by Barclays has agreed to buy two mortgage books from defunct bank Bradford & Bingley for £5.3 billion.
The closed books had been managed by UK Asset Resolution (UKAR), the so-called bad bank that looked after assets of Bradford & Bingley and Northern Rock after their collapse and nationalisation in 2008.
The deal will effectively recover £5.3 billion of taxpayer cash, according to the Treasury.
The consortium, led by Barclays, intends to securitise the residential loan portfolio - meaning it will be made available as an investment product after the sale is completed.
The loans were purchased with equity funding from funds managed by Pimco.
The mortgages will continue to be administered by the same company to provide continuity of service.
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