The British government has resumed its planned of mortgageportfolios, after the process was put on hold to assess market volatility inthe aftermath of the U.K.'s decision to leave the EU, Bloomberg News reportedOct. 4, citing "three people with knowledge of the matter."
UK AssetResolution Ltd., the entity in charge of managing the mortgages,confirmed in an emailed statement that it launched the first phase of the assetsale program, after receiving necessary approvals. UKAR, which is looking togenerate £15.65 billion from the sale to repay its outstanding debt to the U.K.Financial Services Compensation Scheme, will send nondisclosure agreements toprospective buyers by the end of the week, according to the people.
UKAR did not specify the value of the initial tranche ofmortgages it plans to sell and will test the appetite of possible bidders forthe loans, which are mainly buy-to-let mortgages, according to the people. Theloan portfolio disposal could help counterbalance the British government'slosses from the declining share prices of Royal Bank of Scotland Group Plc and , in which ithas stakes. The U.K. already postponed until at least 2017 plans to sell furtherstakes in Lloyds and RBS, due to the country voting to leave the EU.
UKAR also noted that the "process remains commerciallysensitive" and that it could not provide further details.