£13 billion of mortgages which were originally owned by Northern Rock are being sold by UK Asset Resolution (UKAR) to Cerberus.

This represents the largest ever financial asset sale by a government in Europe.

The Treasury claims that UKAR is selling this portfolio of mortgages for £280 million more than their book value.

The sale means that the government has exited over 85% of the assets of the former bank.

Osborne said: “Today marks another major milestone in clearing up the mess left by the financial crisis, with the sale of former Northern Rock mortgages.

“The sale, which raises £13 billion for the British taxpayer, is the largest ever sale of financial assets by a British government, and we are now clear that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis.”

There will be no changes to the terms and conditions of the mortgages sold. Customers do not need to take any action.