Initially announced in March 2016, the sale is designed to raise sufficient proceeds for Bradford & Bingley to repay a £15.7bn debt to the Financial Services Compensation Scheme and the corresponding loan from the Treasury.
A consortium of the UK’s biggest banks are believed to be prepared to provide financial support for the sale as required.
Philip Hammond, chancellor of the exchequer, said: “As part of our plan to recover all of the cash British taxpayers injected into the banking sector during the financial crisis, we have begun the process of selling our Bradford & Bingley assets.
“This is one of my top priorities as chancellor and that is why I approved UKAR to begin this process.
“I am determined to do everything I can to ensure that taxpayers get their money back.”
All proceeds from the sale will be used to reduce the national debt.
Earlier this year, Loan Talk spoke exclusively to Andrew Jones, CEO of Computershare Loan Services, following news that the firm had been selected to manage £30bn worth of mortgages for UKAR.
UKAR is the holding company of failed bank Bradford & Bingley.
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