US private equity firm Blackstone and insurer Prudential have bought £11.8bn of Bradford & Bingley buy-to-let mortgages from the taxpayer.
The loans, bought at the height of the financial crisis, were sold after what the Treasury described as “a highly competitive sale process”.
Chancellor Philip Hammond (pictured) said: “The sale of these Bradford & Bingley assets for £11.8bn marks another major milestone in our plan to get taxpayers’ money back following the financial crisis.
“We are determined to return the financial assets we own to the private sector and today’s sale is further proof of the confidence investors have in the UK economy.”
The Treasury said the deal will be the first in a number of sales to allow Bradford & Bingley to repay its £15.65bn debt to the Financial Services Compensation Scheme and a corresponding loan from the Treasury.
UK Asset Resolution (UKAR), which has been handling the sale, said that terms and conditions for the 104,000 loans will not change.
The Treasury expects the process of sales to be concluded before the end of the 2017-18 fiscal year.