The portfolio to be sold to JC Flowers consists of unsecured loans and represents less than 1 per cent of the overall loan book run by state-owned body UK Asset Resolution.
UKAR is a 'zombie bank' which does not take new business - it is responsible for winding down the loans of now-defunct lender Northern Rock Plc and Bradford & Bingley, which the government bailed out during the 2008 financial crisis.
The Financial Times has reported that JC Flowers is expected to pay about £300m for the loans – about two-thirds of their value and said JC Flowers were expected to buy the Northern Rock loans through its One Savings operation, which was launched as a way to invest in the Kent Reliance building society in 2010.