Northern Rock 'bad bank' UKAR repays £2.1bn

 

The state-owned company responsible for winding down the mortgage books of bailed-out lenders Northern Rock and Bradford & Bingley said today it increased its repayments to the Treasury to £2.15 billion last year.

Lending balances fell by 10% to £75.3 billion in 2011, enabling the repayment to the Government, but the business still owes £46.6 billion and remains the sixth biggest mortgage provider in the UK. It has 722,000 customers.

Richard Pym, chairman of UK Asset Resolution (UKAR), said it was "our expectation and our determination" to repay the debt in full without loss to the taxpayer.

A report this week from UK Financial Investments, which manages the Government's bank stakes, said Northern Rock and Bradford & Bingley should generate a cash return of between £95 billion and £97 billion, compared with £64 billion of initial funding.

However, it warned the process could take up to 15 years to complete.

As much as £1 billion has been secured from the recent sale of Northern Rock's retail savings and mortgage book to Virgin Money, while £3.1 billion has been repaid from the closed mortgage book of Northern Rock, run by UKAR, since the split in October 2010.

Bradford & Bingley commenced Government repayments during 2011 and contributed £150 million to the £2.15 billion repaid by UKAR last year, a figure which compared with £1.1 billion in 2010.

UKAR also paid a further £688 million in interest, fees and corporation tax, resulting in an overall figure of about £2.8 billion.

The organisation said more than 90% of its customers were fully up to date with their payments, a similar level to last year, but that it made 37,000 mortgage arrangement and account modifications to assist customers.

The total number of mortgage cases three or more months in arrears, including those in possession, reduced by 14% to 33,216 at the end of the year. The improved arrears performance meant underlying profits improved 145% to £1.1 billion.

UKAR recently announced plans to close its operations at Gosforth in Newcastle and run the business from Doxford in Sunderland and Crossflatts in West Yorkshire.

PA

Start your day with The Independent, sign up for daily news emails
Sport
England's women celebrate after their 3rd place play-off win against Germany
Women's World CupFara Williams converts penalty to secure victory and bronze medals
Arts and Entertainment
Ricardo by Edward Sutcliffe, 2014
artPortraits of LA cricketers from notorious suburb go on display
News
newsHillary Clinton comments on viral Humans of New York photo of gay teenager
Arts and Entertainment
The gang rape scene in the Royal Opera’s production of Gioachino Rossini’s Guillaume Tell has caused huge controversy
music
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate
Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

'The economic collapse has happened. What is at risk now is democracy...'

If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
The science of swearing: What lies behind the use of four-letter words?

The science of swearing

What lies behind the use of four-letter words?
The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

The Real Stories of Migrant Britain

Clive fled from Zimbabwe - now it won’t have him back
Africa on the menu: Three foodie friends want to popularise dishes from the continent

Africa on the menu

Three foodie friends want to popularise dishes from the hot new continent
Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

Who will fill Donna Karan's boots?

The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'