THE Government has sold off an £860 million mortgage portfolio owned by collapsed lenders Bradford & Bingley and Northern Rock to Rothesay Life.

The mortgages had been managed by UK Asset Resolution (Ukar), which looked after the assets of Bradford & Bingley and Northern Rock after their collapse and nationalisation in 2008.

"There will be no changes to the terms and conditions of the mortgages sold," said Ukar. "Borrowers do not need to take any action."

The deal brings the Government a step closer to a final wind-down of the firms, which became symbolic of the UK's financial crisis.

Chancellor of the Exchequer Philip Hammond said: "We're continuing to recover the money the taxpayer committed during the financial crash, and the sale of these loans moves us one step closer.

"The proceeds of this sale will go towards reducing our national debt."