A government-backed holding company has been accused of trapping families in homes funded by risky loans by blocking their attempts to sell their property to pay off debts. Borrowers in negative equity, who have interest-only mortgages and high-interest equity release deals, have been called upon by the UK Asset Resolution (UKAR) — set up by the Treasury — to settle their debts. However, UKAR has been refusing to negotiate settlements, according to the Sunday Times. Consumers told the paper that UKAR has almost non-existent customer service, takes weeks to answer questions and communicates only by letter. A product of the credit crunch, UKAR was set up by the Treasury in 2010 to look after mortgages from Bradford & Bingley and its subsidiary Mortgage Express, and Northern Rock.
The Sunday Times, Page: 11