Northern Rock's 'bad bank' to shut Gosforth office

UK Asset Resolution Limited (UKAR) - the Northern Rock 'bad bank' - today announced plans to shut its Gosforth office by the middle of 2013.

UK Asset Resolution Limited (UKAR) - the Northern Rock 'bad bank' - today announced plans to shut its Gosforth office by the middle of 2013.

The state-owned holding company, which also manages the mortgage books of the former Bradford & Bingley, will focus instead on its sites at Sunderland’s Doxford Park and Crossflatts in Bingley.

It said there would be a phased withdrawal of staff from Gosforth, where around 700 of the group’s 2,400 staff are based. Some jobs are expected to go.

The majority of Gosforth workers will be offered the chance to move to Doxford Park although some of the roles will be shifted to Yorkshire.

Chief executive of UKAR, Richard Banks, said: “Our job is to manage the wind down of the mortgage books. By the end of 2013 we expect the number of mortgages to have reduced by 25% since UKAR was established. 

“As a consequence, we will need fewer people and it will no longer be cost-effective to run the business from three sites. 

“Our duty is to deliver value for money for our owner, the UK taxpayer. The loss of some jobs is regrettable but we will work hard with colleagues and the union to relocate people where possible and offer support to those colleagues affected.”

:: Are you affected by the planned closure? Let us know in the comments below, or contact the newsdesk on 0191 201 6446 or email here.

 
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