Northern Rock has today agreed to sell £2.2bn of mortgage assets to investment bank JP Morgan.
Northern Rock says it will use the money raised to help pay off money lent by the Bank of England during last summer’s credit crunch. The firm's pension fund has also been forced to make changes, prompting it to ask the Bank and the Government to guarantee a potential deficit. The Rock says it has sold the mortgage book to JP Morgan for a 2.25% premium over the value of the assets. The sale, representing around 2% of Northern Rock’s total mortgage assets, will help the stricken mortgage lender pay back some of the £25bn it has borrowed from the Bank of England, equivalent to over £700 fr...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
