Treasury-owned UK Asset Resolution (UKAR) today said it had repaid in full the government loan of £48.7bn which it had mainly used to buy up bad loans from now-defunct Northern Rock and B&B.
UKAR was created in 2010 to help wind up the imperilled lenders in an orderly way. It took on billions of pounds worth of mortgage loans that borrowers could not afford to pay back as house prices fell.
“I am delighted that, in under ten years, we have been able to repay in full the government loan,” he said.
Between formation in October 2010 and 31 March this year, the UKAR balance sheet was reduced by £104.4bn, reflecting £37.4bn of asset sales and £43.5bn of customer loan repayments.
Hares said: “Looking forward, we are focused on the disposal of the remaining government investments in NRAM and B&B.”