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UK Asset Resolution

Question for Treasury

UIN 226545, tabled on 27 February 2019

To ask the Chancellor of the Exchequer, what criteria in terms of protection for long-term holders of former Northern Rock mortgages were established by UK Asset Resolution before conducting such sales.

Answered on

4 March 2019

The Government and UK Asset Resolution (UKAR) take treating customers fairly very seriously. UKAR has always included non-negotiable customer protections as part of the legal documents in every sale, past and present. Bidders must accept these terms before their bids are considered on price. For past sales, these protections required that: the servicer of the mortgages is regulated by the Financial Conduct Authority (FCA); the terms and conditions of the mortgages are not changed; and purchasers abide by restrictions on how the Standard Variable Rate (SVR) can be set.

The Government and UKAR have listened to stakeholders on the issue of customer protections and have enhanced the protections for current and future sales. New protections include: requiring that both the servicer and legal title holder are FCA-regulated; restrictions on setting SVRs for the lifetime of the mortgage; and no early repayment charges, should a customer wish to switch mortgages.

Answered by

Treasury
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