UKAR Fact Sheet 6 months to 30 September 2016

UKAR’s mission is to maximise value for the taxpayer while treating all stakeholders fairly

UK Asset Resolution (UKAR) is UKAR is responsible for the the holding company UK Financial Investments administration of the established on 1 October 2010 Limited (UKFI) manages HM Government’s Help to Buy: to bring together the Treasury’s 100% shareholding mortgage guarantee scheme government owned businesses in UKAR. and the Help to Buy: ISA on of Bradford & Bingley (B&B) and behalf of HM Treasury. NRAM.

Key Strategic Developments In the last period:

• Successfully completed the final stage of a major sale of c.£13bn assets which saw 113,000 NRAM customer loans move to the Landmark Mortgages or Whistletree brands.

• Completed the outsourcing of the servicing of our customer loans to Computershare providing stability of service to customers.

• Subsequently launched the first stage of a sale of Bradford & Bingley assets that could ultimately enable the phased repayment of the Financial Services Compensation Scheme (‘FSCS’) loan.

These developments are based on achieving value for the taxpayer, whilst serving our customers well and treating all our stakeholders fairly.

Business highlights Customers and Conduct Since formation: In the last period:

Balance sheet reduced by £78.9bn, 68%. More than 95% of our customers are up to date with their mortgage payments. Government loan repayments of £21.4bn; loan reduced by 44%. Made c. 8,000 “arrangements to pay” to assist customers in difficulty. Mortgage accounts three or more months in arrears, including possessions, have Referred c. 1,600 customers to not-for- reduced by 86%. profit debt advice agencies, who provide free assistance to help customers reorganise their finances. £15.4bn of mortgages and loans sold. Proactive contact with interest only 99% of private sector debt repaid (£57.4bn). customers to offer help and support on their plans to repay their mortgage. UKAR Fact Sheet 6 months to 30 September 2016

Mortgage Book Data

Total residential B&B = £23.5bn NRAM = £8.9bn mortgages = £32.4bn Key facts UKAR B&B NRAM Total mortgage 203,000 135,000 68,000* customers £8.9bn 31% 29% Total mortgage accounts 273,000 201,000 72,000 Total interest only 206,000 165,000 41,000 accounts 75% 82%** 57%

Average size of £123,000 £126,000 £120,000 homeowner mortgage £23.5bn 69% 71% Average size of BTL £116,000 £114,000 £135,000 NRAM B&B Homeowner Buy-to-let Homeowner Buy-to-let mortgage

* This figure does not include 17,125 (Safe & Sure) customers/accounts where the deeds are held by NRAM but a nil balance is on the account.

** Of these 131,000 (91%) are buy-to-let customers.

Key Financial Information

Arrears and Possessions UKAR B&B NRAM Key facts 40,000 Govt. loan repayments £1.1bn (£0.9bn)* £2.0bn

Reported underlying profit £401.5m £222.3m £179.2m 30,000 before tax 25,206 86% 1 Debt owed to other investors £0.3bn £0.1bn £0.2bn 20,000

Equity capital £8.3bn £3.6bn £4.7bn Mortgage Accounts Mortgage

Balance sheet reduction £6.4bn £4.4bn £2.0bn 10,000 14,326 3,574 * Includes £3.0bn borrowing from HM Treasury to fund the repayment of the remaining Aire Valley securitisation 2,977 liabilities, partly offset by £2.1bn of loan repayments. 2,803 2,652 0 Formation 31 Mar '16 30 Sep '16 B&B NRAM Number of mortgage accounts 3 months+ in arrears including properties in possession. 1. Percentage reduction since formation in 2010

120 60 Balance Sheet Government Debt

100 50

1, 2 1 80 69.8 68% 40 44% 21.7

60 30

bn

bn £ £ 7.4 5.5 20 40 12.6 10.6 27.0 3 20 46.0 10 20.9 21.7 30.7 26.2

0 0 Formation 31 Mar '16 30 Sep '16 Formation 31 Mar '16 30 Sep '16 B&B NRAM B&B NRAM 1. Percentage reduction since formation in 2010 1. Percentage reduction since formation in 2010 2. Of the B&B loan, £15.65bn is owed to the FSCS 3. Includes £3.0bn borrowing from HM Treasury to fund the repayment of the remaining Aire Valley securitisation liabilities, partly offset by £2.1bn of loan repayments.

Contact details For any media enquiries, please UKAR For further information contact our press office on: Aire Valley House go to: www.ukar.co.uk 07909 213 772 Croft Road, Crossflatts, Bingley [email protected] West Yorkshire, BD16 2UA