UK Asset Resolution Limited (UKAR), which manages the state-owned Northern Rock (Asset Management) (NRAM) and Bradford & Bingley, is to sell £465m of NRAM mortgages to Virgin Money.

Virgin, which took over the ‘good’ part of Northern Rock, will take on the mortgages on secured on residential property assets and the proceeds of the sale will be used directly to repay NRAM’s Government loan.

UKAR said the sale will not affect the terms and conditions of the mortgages and around 3,700 customers who will be affected will be contacted directly by NRAM and Virgin Money when the transfer takes place.