Linklaters advises on record-breaking £13 billion sale of former Northern Rock mortgages

Linklaters has advised on a record-breaking £13 billion sale of mortgages acquired by the government during the financial crisis. The mortgages, which were originally owned by Northern Rock are being sold by UK Asset Resolution (UKAR) to Cerberus, in what is the largest ever financial asset sale by a government in Europe.

UKAR is selling this portfolio of mortgages for £280 million more than their book value, demonstrating the strength of global investors’ interest in the UK. All proceeds will be used to pay down the national debt.

Tracey Lochhead, Corporate partner at Linklaters, who advised Cerberus on the deal, says “This is without question one of the biggest and most complex asset back deals ever done and is an important addition for Cerberus, demonstrating their commitment to the European mortgage and real estate market.”

The Linklaters team was led by Structured Finance partner Adam Fogarty and Corporate partner Tracey Lochhead and included lawyers across capital markets, corporate, tax, financial regulation and pensions practices. Linklaters will also advise on the associated financing and onward loan sales.

For more information, contact Surinder Sian on 0207 456 4842.