A DEAL to offload more than £13bn of former Northern Rock mortgages and loans was value for money, a report has concluded.

The National Audit Office says the Treasury’s decision to sell to US private equity firm, Cerberus, was a prudent piece of business.

It added the sale was a good deal for Britain's taxpayers, saying they received £5.5bn in cash, with 270,000 mortgages and loans sold.

Public funds were used to rescue Newcastle-based Northern Rock when it collapsed during the financial crisis.

UK Asset Resolution (UKAR), created to run down the loans in Northern Rock, conducted the sale, which included £11.9bn of mortgages and £1.4bn of additional loans.

Amyas Morse, head of the National Audit Office, said: “This was an extremely large and complex transaction that was professionally executed within a tight timeframe, though there are some lessons to be taken from the process.

“Overall, in the context of the overall objective of swiftly reducing the balance sheet, the sale achieved value for money.”