He said the Treasury wants to recover £15.65bn for UK taxpayers through UK Asset Resolution Limited (UKAR), which has owned the bank since 2010 after its assets were merged with the so-called bad bank of Northern Rock.
The sales programme is intended to repay the bank’s £15.65bn debt to the Financial Services Compensation Scheme and, in turn, the corresponding loan for this from the Treasury.
A consortium of banks will provide financing to support the sale, which is expected to conclude before the end of 2017-18.
Hammond said: “As part of our plan to recover all of the cash British taxpayers injected into the banking sector during the financial crisis, we have begun the process of selling our Bradford and Bingley assets. This is one of my top priorities as chancellor.” He said all proceeds would be used to reduce the national debt.
UKAR runs the closed mortgage books of both Bradford & Bingley and NRAM. The latter formerly part of Northern Rock.
