NRock sells £2.25bn worth of mortgages to JPM

The portfolio comprises gross assets with a balance sheet value of £2.2bn - around 2pc of its total assets as at June 2007 - though JPMorgan is paying a premium of 2.25pc, representing approximately £50m. The portfolio earned net interest income of £34m during the 12 months to 30 June 2007. However, Northern Rock concluded that, in view of its current and assumed future funding costs under the facilities with the Bank of England, on which interest is charged at a penal rate, the future net interest income which would have been earned on the portfolio if it had been retained would have bee...