13th November 2015
TSB Bank has entered into a deal to take over 34,000 Northern Rock mortgages.
The portfolio comprises that TSB is taking on comprises residential and linked unsecured loans from the Northern Rock legacy book.
Paul Pester, TSB chief executive, said: ‘We’re delighted to become the lender to 34,000 new customers across the UK and provide a secure, long-term home for these mortgages. Supporting hardworking people and helping local communities right across Britain to thrive is absolutely at the heart of what TSB was set up to do.
‘With one of the highest capital ratios in the industry TSB is well placed to support the loans. In addition, they will significantly enhance TSB’s profitability which, in turn, will help us to continue to deliver our growth strategy – helping us to bring more competition to UK banking.’
The UK Asset Resolution – set up by the government in the wake of the financial crisis as a ‘bad bank’ to run down Northern Rock and Bradford and Bingley mortgages – has sold £13 billion of Northern Rock mortgages to US investment firm Cerberus.
TSB has purchased £3.3 billion of the former Northern Rock mortgage from Cerberus.