Compare Mortgage Rates from UKAR Against the Market starting at 3.96%

Important Clarification: UKAR is not an active lender.

You cannot apply for a mortgage with UKAR. It was the government-owned "bad bank" established in 2010 to manage the mortgages of Northern Rock (NRAM) and Bradford & Bingley after they were nationalised during the financial crisis.

Current Status (2025): UKAR has largely finished its job. It has sold off almost all its mortgages to private investment funds and is currently in the process of winding down its operations entirely.

If you’re a former UKAR customer looking for an alternative lender to the one you ended up with, use our free mortgage-sourcing tool below to explore the available options.

What was UKAR?

When Northern Rock and Bradford & Bingley collapsed in 2008, the government stepped in to save them.

• Good Bank: The "good" parts (branches and savings accounts) were sold to Virgin Money (Northern Rock) and Santander (Bradford & Bingley).

• Bad Bank: The risky mortgages (loans that were in arrears, or high-risk products like "Together" mortgages) were kept by the government in a new holding company called UKAR.

For over a decade, UKAR's job was to recover money for the taxpayer by managing these loans and slowly selling them off to private investors.

Where is your mortgage now?

If you were originally a customer of Northern Rock (NRAM), Bradford & Bingley, or Mortgage Express, your loan has likely been sold. UKAR sold these mortgage books in huge "tranches" to various investment firms.

Depending on when your loan was sold, you are likely now with one of the following:

1. Whistletree (TSB):

• In 2015, a large chunk of Northern Rock residential mortgages was sold to TSB, who created the brand Whistletree to manage them.

Heliodor Mortgages / Rosinca Mortgages:

• Many loans were sold to investment groups like Computershare or Topaz Finance. These are often trading as Heliodor, Rosinca, or Jasper.

Landmark Mortgages:

• Some loans were sold to Cerberus Capital Management and are administered under the Landmark brand.

Citi / Davidson Kempner:

• In 2021, the final remaining loans (NRAM and Bradford & Bingley) were sold to a consortium led by Davidson Kempner. These are often serviced by Computershare.

Check your bank statement: You will likely see the name of the administrator (e.g., Computershare, Topaz) rather than the owner of the loan.

The "Mortgage Prisoner" Issue

Many former UKAR customers are classified as "Mortgage Prisoners."

• The Trap: Because you were with a "closed book" (UKAR) and then sold to an "inactive lender" (like Heliodor), you could not easily switch to a cheaper fixed rate.

• The Problem: Many of these customers are stuck on high Standard Variable Rates (SVRs) but cannot pass the strict affordability checks required to remortgage to a high-street bank like Nationwide or Halifax.

• Active Lenders: If your loan was sold to an active lender like TSB (Whistletree), you may have more options to switch to a fixed rate internally than those sold to investment funds.

Pros and Cons (For Legacy Customers)

Pros:

• Taxpayer Repaid: From a national perspective, UKAR succeeded in repaying the government billions of pounds used to bail out the banks.

• Regulation: Even though your loan is owned by an investment fund, the administrator (e.g., Computershare) is regulated by the FCA. You still have the right to complain to the Financial Ombudsman Service.

Cons:

• No Loyalty Deals: If you are with an inactive lender, they generally do not want to keep you. They will not offer you competitive retention deals.

• Communication: It can be confusing to know who actually owns your debt. You might receive letters from "NRAM" (the brand), serviced by "Computershare" (the admin), owned by "Davidson Kempner" (the fund).

What to do if you are a former UKAR customer

If you are still paying a mortgage that originated with Northern Rock or B&B:

1. Do not stay silent: If you are struggling with payments, contact your current servicer immediately.

2. Check for "Prisoner" Solutions: Some active lenders (like West Bromwich Building Society, Halifax, and NatWest) have specific modified criteria to help mortgage prisoners switch away from closed books. You should speak to a specialist broker.

3. Residual Complaints: If you have a historic complaint about how your loan was sold before it moved to the new owner, UKAR has a residual complaints team (managed via the address below), though usually, liability travels with the loan.

Get started here to explore all of your options with a mortgage broker who specialises in helping former UKAR customers and can help you find the best path forward.