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
Voices
voices
News
general electionThis quiz matches undecided voters with the best party for them
Arts and Entertainment
Keira Knightley and Matthew Macfadyen starred in the big screen adaptation of Austen's novel in 2005
tvStar says studios are forcing actors to get buff for period roles
News
Prince William and his wife Catherine, Duchess of Cambridge show their newly-born daughter, their second child, to the media outside the Lindo Wing at St Mary's Hospital in central London, on 2 May 2015.
news
ebooks
ebooksA celebration of British elections
  • Get to the point
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

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before