UK Asset Resolution Pays Back £4 Billion
Based on good recollection of mortgage debts and asset seizures, UK Asset Resolution continues to run down the loans of two rescued lenders and has repaid around 10% of debts owed.
The bank repaid £4 billion pounds to the British Government last year, reported Reuters.
The bank is still operating but cannot take new business because it still owes the government around £43.4 billion. This is a huge improvement from the £48.7 billion owed after being created in 2010.
CEO Richard Banks said that he expects the bank will pay back the full amount inside ten years and tax payers will get the money back used to fund the rescue of Bradford & Bingley and Northern Rock at the height of the Global Financial Crisis.
However, Banks did admit factors such as interest rates, unemployment and the state of the economy influence the bank’s ability to repay.
The bank continues to make a record profit of £1.36 billion despite paying increasingly higher rates of interest to the government.
Richard Banks said that regular arrears every month from home loan lenders indicate fragile times and this is probably why Virgin Money scooped up £465 million worth of mortgages in the middle of 2012.