The Sunday Times has reported that the Royal Bank of Scotland is close to closing a deal in which it will buy £13 billion worth of mortgages off of the government.
The government came to hold a mortgage book of this size, following the collapse of Northern Rock and Bradford and Bingley.
131,000 mortgages which originated with Northern Rock are supposedly up for sale, an amount which has piqued the interest of more than just RBS.
The US hedge fund Cerberus and the owner of TSB Sabadell are also looking into acquiring the mortgages.
RBS have had to make a huge recovery over the last eight years. During the financial crash, they were bailed out by the UK government, and until today, still remain backed by the tax payer.
However, Chancellor George Osborne has already announced that shares in the bank will now begin to be sold off, even though it is likely to make a loss on the amount that the government initially bailed it out for. So far, the government has sold off 5.4% of its holding to institutional investors, in a £1.1 billion loss for the tax payer.
With a mortgage portfolio under its belt as big as this one is, and with the government selling off the shared, RBS should hopefully be able to get back on its feet and become stable without state support.