The bank behind failed lenders Northern Rock and Bradford & Bingley said it has repaid £10.4bn to the Government as rising house prices and low interest rates encourage borrowers to look elsewhere for deals.
The amount returned since the 2010 formation of UK Asset Resolution (UKAR) - the state-owned firm responsible for winding down the mortgage books of the collapsed banks - includes £5.1bn in the 15 months to March 31.
Announcing annual results, UKAR said: “A lot of good work has been achieved to date and we expect to repay the remaining £38.3bn debt in full.”
An 11 per cent reduction in UKAR’s loan book over the 15 months has been driven by mortgage redemptions, leaving it with 467,000 customers and 529,000 mortgage accounts.
More than 93 per cent of borrowers are up to date with their payments, with mortgage accounts three or more months in arrears, including possessions, down by 39 per cent to 15,483 since December 2012.
Richard Banks, the UKAR chief executive, said: “UKAR has continued to make good progress over the past 15 months.”
The company is headquartered at Crossflatts in West Yorkshire and has two sites in Sunderland. It employs around 2,100 people between West Yorkshire and the North East.