As previously announced UK Asset Resolution Limited (UKAR) has been exploring potential options for the divestment of its mortgage servicing activities in order to ensure continuity of service and long term stability for customers. Following a competitive process we are pleased to announce that we have entered into a period of exclusivity with Computershare.
This transaction follows the successful sale of £13bn of assets announced in November 2015 and will enable UKAR to continue to maximise taxpayer value through the controlled wind down of its balance sheet, whilst ensuring stability and continuity of service to customers. Computershare will be able to build on the proven skills UKAR has demonstrated in debt management and serving customers over the past five years.
- £30bn of assets which will be managed by Computershare will continue to be owned by Bradford & Bingley (B&B), Mortgage Express and NRAM. There will be no changes to the terms and conditions of mortgages.
- Customers will continue to have their mortgages serviced by skilled colleagues and will not need to take any action.
- The contract will be for a seven year term.
- Some 1700 colleagues based in Sunderland and West Yorkshire will transfer to Computershare.
- Post separation UKAR will comprise around 250 employees who will continue to manage the balance sheets of NRAM and B&B on behalf of HM Treasury and, through UKARcs, administer the Government’s Help to Buy Mortgage Guarantee Scheme and Help to Buy ISA.
No further details will be given during this period of exclusivity. UKAR was advised in the process by Credit Suisse and completion of the transaction is expected by Summer 2016.
Richard Banks, Chief Executive Officer of UKAR, commented:
“The ability for UKAR to proceed with the divestment of its mortgage servicing capabilities demonstrates the value of the excellent debt management and customer service skills it has deployed. Today’s announcement is great news for customers and the taxpayer. The transaction will establish a long term strategic solution for our mortgage servicing activities providing continuity of service for our customers and a sustainable future for our employees.”
NOTES TO EDITORS
UK Asset Resolution Limited (UKAR)
UKAR, the holding company for NRAM plc (NRAM) and Bradford & Bingley plc (B&B), was established on 1 October 2010 to facilitate the orderly management of the closed mortgage books of both B&B and NRAM to maximise value for taxpayers, while ensuring that both companies continue to treat customers fairly, deliver consistently high levels of service and support those customers facing financial difficulty. Further information about UKAR is available at www.ukar.co.uk.
On 8 October 2013 UKAR Corporate Services Limited (UKARcs), a subsidiary business of UKAR, became responsible for the administration of the Government’s Help to Buy Mortgage Guarantee Scheme on behalf of HM Treasury. On 1 December 2015 UKARcs also became responsible for the administration of the Government’s Help to Buy ISA Scheme on behalf of HM Treasury.
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