E&Y takes over Heritable’s loan book

Ernst & Young has been called in as administrator of Icelandic bank
Heritable Bank and will run its books
of almost 81,000 mortgages, as borrowers continue to make repayments while the
firm winds up the bank.

Tom Burton, Alan Bloom, Maggie Mills and Patrick Brazzill are the joint
administrators of the bank which is now in default, according to the
Services Authority
(FSA). Deposits from the banks have been transferred to
Dutch-owned ING Direct.

According to parent bank Landsbanki, which is also in receivership, Heritable
had a loan book of £2.04bn in 2007, of which the UK and Irish mortgage markets
accounted for 22%.

‘Heritable will continue to manage its current loan book and the
administrators will be seeking to find purchasers for, and will continue to
manage, the remainder of Heritable’s business and loan book to maximise recovery
for creditors,’ a statement said on the bank’s website.

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