A £13bn (€18m) mortgage portfolio put up for sale by the bad bank charged with winding down the assets of two failed British lenders has lured interest from several possible bidders, the group’s boss said yesterday.

More than 40,000 borrowers are in line to receive thousands of pounds in compensation following a High Court ruling over the wording of documents sent out by British lender Northern Rock.

The state-owned UK company that runs nationalised Northern Rock Asset Management and Bradford & Bingley today said both companies returned to profit last year.

The group formed from Northern Rock and Bradford & Bingley’s toxic loans has paid back another £1bn in taxpayer cash this year after ramping up its debt repayments.

Alliance & Leicester’s managing director Peter McNamara is to leave the group after a major management shake-up at the mortgage bank.