£13 billion sale of 'bad bank' mortgages to a US private equity firm threatens the long-term security of thousands of home owners
warns Unite, the trade union for UK financial workers.
The government is selling its remaining stake in Northern Rock and Bradford & Bingley
to US private equity firm
Until now these mortgages have been held by
UK Asset Resolution), the so-called 'bad bank' established by the government as a holding company in 2010.
It has also been announced that TSB Bank, itself recently sold to Banco Sabadell, will buy £3.3 billion of former Northern Rock mortgages from
, becoming the lender to
34,000 UK home owners.
Unite regional officer Brian Cole said:
The sale of mortgage debt for astronomical figures was one of the main causes of the financial crisis, so it's alarming to see the mortgages of so many home owners being sold-off to an equity firm whose only interest is short-term profit.
"The finance industry doesn't need another 'get rich quick' scheme. O
ur members and the thousands of home owners who rely on us deserve long-term security, yet once again their futures are being placed on the roulette wheel.
"Unite will continue to consult our members at UKAR and seek assurances from Cerberus
over both the long-term future of staff and the mortgage book."
For further information please contact Ben Norman on Ben.firstname.lastname@example.org or 07525 590 075.
Notes to editors
Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.