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Ukar Sells 2.7 Billion Sterling Of Mortgages To Jp Morgan-Led Consortium

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http://uk.reuters.com/article/2014/10/14/uk-banks-uk-assetsales-idUKKCN0I30GB20141014

UK Asset Resolution (UKAR), the holding company for defunct Bradford & Bingley and Northern Rock Asset Management, said on Tuesday it had sold 2.7 billion pounds of performing mortgages to Commercial First, a consortium led by JP Morgan.

The sale will turn a 55 million pound profit for state-backed UKAR. "The continued fair treatment of customers was a key consideration for UKAR in selecting the winning bid," UKAR said. "The sale will not affect the terms and conditions of the mortgages in this portfolio and the c.27,000 customers impacted will be contacted directly."

Excellent the profits are privatised.

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How interesting, these must be 95% LTV government backed mortgages are they are the only mortgage with enough yield to be sold. For example I can't see anyone being interested in HSBC 1.99% trackers.

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(Reuters) - UK Asset Resolution (UKAR), the holding company for defunct Bradford & Bingley and Northern Rock Asset Management, said on Tuesday it had sold 2.7 billion pounds of performing mortgages to Commercial First, a consortium led by JP Morgan.

The sale will turn a 55 million pound profit for state-backed UKAR.

It would have been interesting if they'd provided some detail how they'd arrived at the claimed "£55 million profit for state-backed UKAR". It doesn't sound much of a profit with the loans having to be administered, sorted and scrutinised by UKAR and then categorised as performing (with little or no risk attached to them).

Likely the "profit" also excludes all those UKAR expenses (taxpayer expenses) in having to handle the sale.

Presumably the dross mortgages still remain on UKAR's (taxpayers') books and if ever sold will likely be at a loss of £billions.

Edited by billybong

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'"The continued fair treatment of customers was a key consideration for UKAR in selecting the winning bid," UKAR said, saying the sale would not affect the terms and conditions of the mortgages in the portfolio.'

It wouldn't surprise me if this was a precursor to those terms and conditions being enforced eg LTV ratio's.I suspect,performing means that mortgagors are making the monthly interest payments and not necessarily that they are on track to clear the balloon payment at the end.

Always an arm's length away from the sh1tstick.Interesting times.I wouldn't want to be one of those poor buggers getting a letter.

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So JP Morgan now owns Fergus's 1000-odd mortgages?

Quite possible ,lets hope commercial first are a bunch of asset striper's,which is possible as every time i have read about this deal it always sates "The continued fair treatment of customers was a key consideration for UKAR in selecting the winning bid,"

Sounds like the PTB are diverting the blame before it happens

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So JP Morgan now owns Fergus's 1000-odd mortgages?

I suspect they will have 'associates' that will be more than willing to go 3 minutes and more with Fergus in the ring! Especially if he has adequate insurance.

If UKAR have successfully peddled his debts, they may have done us all a good service. I'd pay good money to watch that buffoon trying to waffle his way out of trouble with some hardcore American banksters. ???

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It would have been interesting if they'd provided some detail how they'd arrived at the claimed "£55 million profit for state-backed UKAR". It doesn't sound much of a profit with the loans having to be administered, sorted and scrutinised by UKAR and then categorised as performing (with little or no risk attached to them).

Likely the "profit" also excludes all those UKAR expenses (taxpayer expenses) in having to handle the sale.

Presumably the dross mortgages still remain on UKAR's (taxpayers') books and if ever sold will likely be at a loss of £billions.

Asw UKAR manages £60bn-odd, they probably have the economies of scale to make a profit. Profit should include financing and other costs, but it may just be a nominal cost, but I am sure the costs of the sale for this transaction would be nowhere near £55m. It is a profit and it also means that the Treasury has to borrow £3bn less this year because funds are freed up.

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  • 407 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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