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UK 'bad bank' payback continues


UK 'bad bank' payback continues


The British government last year received 4.0 billion pounds ( 4.7 billion euros) of the money used to bail out lenders Northern Rock and Bradford & Bingley during the 2008 financial crisis, but still owes more than ten times that amount.

The UK Asset Resolution organisation, which took over their loans, said the UK Treasury should get all of the cash back within 10 years as it works with customers who have fallen behind on their mortgages to come up with repayment plans.

UKAR Chief Executive Richard Banks said he was “very confident” taxpayers would see the return of all the money the government spent on rescuing the lenders, but he added: “It does always depend on economic factors such as unemployment, interest rates and the general state of the economy.”

Mortgage accounts three or more months in arrears fell by 23 percent to 25,581 last year according to UKAR.

Banks said he expects the number of mortgages in arrears to continue to decline this year although possibly at a slower pace than in 2012.

“We still see a regular number of new-to-arrears customers every month. Times are still quite fragile but the economy is stable. The outlook is a little uncertain still,” he said.

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