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  • Property-a-holics

    UKAR balance sheet reduced by nearly £50 billion since formation.

    As announced in the 2012 full year results UKAR has changed the Group's accounting reference date from 31 December to 31 March in order to align the year end with HM Treasury. These results are for the 12 month reporting period to 31 March 2015. Where appropriate to show full year comparisons, the unaudited 12 month figures for the period to 31 March 2014 (‘2013/14’) are used in this announcement.

    UK Asset Resolution Limited ('UKAR') which incorporates Bradford & Bingley plc ('B&B') and NRAM plc ('NRAM') today issues its results for the year ended 31 March 2015 ('2014/15'). UKAR's mission is to maximise value for the taxpayer, whilst serving our customers well and treating all our stakeholders fairly.

    Key highlights

    >Balance sheet reduced by a further £8.8bn bringing the total reduction to £49.7bn, down almost 43% since formation of UKAR in 2010.

    >Government loan repayments of £3.7bn, bringing total repayments to £14.1bn since UKAR was formed. Almost 30% of the government loans have now been repaid.

    >Mortgage accounts three or more months in arrears, including possessions, have reduced by 23% during the year to 11,976 (70% since formation).

    >Underlying profit before tax of £1,398.1m, 11% higher than the comparable period in 2013/14.

    >Costs down 7% compared to the year to March 2014.

    >Sale of a portfolio of performing mortgages for £2.7bn, at a premium of around £55m over book value.

    >Further remediation provisions of £295m, mainly for the potential redress of historic issues relating to unsecured loans greater than £25k.

    Strategic Update

    Following the success of recent asset sales and in light of positive market conditions and healthy investor interest, in April 2015 UKAR began the process of seeking expressions of interest in respect of two potential transactions:

    >Sale of mortgage assets of circa £13bn

    >Sale or outsourcing of our mortgage servicing operations

    These transactions are contingent on achieving value for money for the taxpayer and will accelerate repayment of the government loans whilst ensuring the stability and continuity of service to customers.

    Richard Banks, UKAR Chief Executive, commented:

    "Over the past four and half years we have achieved excellent results, reducing the balance sheet by nearly £50bn and overseeing a 70% fall in the number of mortgage accounts three or more months in arrears. To build on our success we are now progressing two ambitious divestment projects which, if successful, will accelerate repayment of the government loans and ensure the stability of service to customers.”

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    Our letterbox goes mad sometimes - Harry Potter style!! (Well ok, his came through the chimney too - but hey!)

    Like today, we got a total of 60 letters, 54 being identical letters from UKAR/MX just to let us know they're changing their phone number.... And we only have half that many mortgages with them - they sent a letter to each of us for each one!



    (16-06-2015 08:39 AM)Vanessa Warwick Wrote:  UKAR's mission is to maximise value for the taxpayer, whilst serving our customers well...

    It's good to know that UKAR's mission is to maximise value for the taxpayer, whilst serving customers well... It's just that sometimes I feel they serve me a bit too well as a customer, but disappoint the taxpayer in me!!
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    Author of The Complete Guide to Property Strategies and The Complete Guide to Property Investing Success
    Learn more at http://www.completepropertysuccess.co.uk

    I also post property updates on my Facebook Page
    Or connect with me via LinkedIn

    "It is the small decisions you and I make every day that shape our destiny" Anthony Robbins

    Another £13bn gone

    This time to Cerberus in a pretty complex deal; one can only wince at the thought of the professional fees involved on both sides https://www.ukar.co.uk/media-centre/press...015?page=1

    also, the BBC is reporting that TSB is buying some of the loans from Cerberus https://www.bbc.co.uk/news/business-34806370

    as a taxpayer, I can only hope that Cerberus hasn't found a way to make money on that part of the deal that UKAR should have / could have captured

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    Jolyon Maugham questions the longer term UK tax implications of the Cerberus deal. As Mr Maugham QC knows a bit about tax, his view on such matters is an interesting one

    https://waitingfortax.com/2015/11/13/so-j...ansaction/

    I am also curious how this £13bn sale only enables £5.5bn of the government loan to be repaid

    Is it really as crude as Cerberus getting a £7.5bn discount on the face value of the loans it bought?

    If so, I'd like to buy a few as well please.
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    The latest bunch are all Northern Rock loans, no MX ones.
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    Lisa All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client. www.keys-mortgages.com

    Any news on the Mx mortgages heard they were on a countdown to either sell or ??
    Kim
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    Seems it isn't just Jolyon and I that raised an eyebrow at the UKAR / Cerberus / TSB "£13bn" deal

    MPs are to look at it to see if it was best value for taxpayers (hint, it wasn't)

    https://www.theguardian.com/business/2015...are_btn_tw
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    The record-breaking £13 billion sale of former Northern Rock mortgages completed on the 5th May as the government received the final £520 million from Cerberus.

    The mortgages, which were originally owned by Northern Rock and were acquired by the government during the financial crisis, were sold by UK Asset Resolution UKAR to Cerberus.

    The sale, authorised by the Chancellor and announced on 13 November 2015, is the largest ever financial asset sale by a government in Europe and means that the government has exited over 85% of the assets of the former bank.

    UKAR sold the portfolio of mortgages for £280 million more than their book value. In a statement, the government says it is 'clear' that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis.

    Full/source story

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    Can't see how the Govt works out they get back more than they put in

    Did the Govt pay the bailout funds interest free!?

    I think they did

    Therefore UKAR has received a free Govt loan paid for by you and me!

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