The government has opted to sell a £13 billion chunk of the debt it bought when acquiring Northern Rock mortgages during the credit crunch, accounting for roughly 125,000 mortgage and loan customers.

The sale is the largest to date by UK Asset Resolution (UKAR), the body that manages the mortgage assets on behalf of the government, getting private equity companies and banks to form groups in order to submit competitive bids.

TSB is just one organisations looking to acquire part of the mortgage book held by the government’s “bad bank”, accompanied by Goldman Sachs, Blackstone and JPMorgan, the Financial Times has reported.

UKAR is an organisation with proven outsourcing prowess, with a procurement team that oversees £160 million in third party expenditure and commercially manages nine large materially outsourced suppliers.

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