UK Asset Resolution


UK Asset Resolution is a British financial services holding company with headquarters in the West Yorkshire village of Crossflatts. It was established in October 2010 as a bad bank to hold the two run-off elements, Bradford & Bingley and NRAM plc, of the two nationalised banks in the wake of the financial crisis of 2007 and 2008.
UKAR manages an asset book in run-off, with the combined entity having a total mortgage book of £21.1bn, down by £94.7bn since its establishment in 2010.

History

On 22 June 2012 Virgin Money, owners of the Northern Rock bank, acquired the remainder of the NRAM Gosforth site, and the following month UKAR sold £465 million of mortgages from the NRAM portfolio to Virgin. UKAR left their Gosforth, Newcastle upon Tyne offices in 2013, and moved those remaining staff to Doxford and Bingley.
In 2011 UKAR repaid £2.15 billion to taxpayers and in 2012 paid a further £4 billion.
In August 2013, the bank said it has now returned £6.6 billion to the government. It owed £48.7 billion when it was created in October 2010.
In 2014 £2.7 billion of the mortgage book was agreed to be sold to Commercial First, a consortium led by JP Morgan.
In 2015 UKFI announced that it would seek expressions of interest for the divestment of mortgage servicing capabilities of the NRAM business as well as the Granite securitisation vehicle. UKFI appointed Moelis & Company as advisers for the divestments. On 13 November 2015, UKAR confirmed the sale of NRAM's Granite mortgage portfolio to Cerberus Capital Management for £13 billion.
On 31 March 2017 it was announced by HM Treasury that the sale of buy-to-let mortgages from the Bradford & Bingley loan book to Prudential plc and funds managed by The Blackstone Group had been agreed for £11.8 billion.