LONDON, Sept 14 Nationalised mortgage bank
Bradford & Bingley will borrow almost 3 billion pounds ($4
billion) from the UK Treasury to replace expensive existing
debts and make itself more attractive for sale, a statement on a
government website showed on Wednesday.
Bradford & Bingley, a buy-to-let mortgage provider bailed
out by the British government during the financial crisis, is
now owned by government vehicle UK Asset Resolution.
Earlier this year, UK Asset Resolution said it would sell a
15.65 billion pound ($23 billion) mortgage portfolio from the
lender in two or three transactions this year, as it seeks a
speedier repayment of taxpayers' money.
Bradford & Bingley will make use of an existing loan
agreement with the Treasury to borrow 2.975 billion pounds to
redeem debts that are funding a residential mortgage backed
Doing so make the underlying mortgages eligible to be
included in future sales when market conditions allow, a
treasury official said in the statement.
Since the failed lender is owned by the government the
transaction is neutral from a public sector debt and budgetary
The payment will be made from the Treasury's contingencies
fund while parliamentary approval is sought.
($1 = 0.7599 pounds)
(Reporting By Lawrence White; Editing by Jon Boyle)