U.K. Asset Resolution (UKAR), which warehouses assets from banks nationalized during the financial crisis, has sold £2.7bn ($4.3bn) of loans to a group led by JPMorgan Chase & Co. in a bid to lower its debt to taxpayers.

The sale is considered to be the largest sale by UKAR till date, and involved selling portfolio of nearly 27,000 performing mortgages to Commercial First, which is a consortium led by JPMorgan.

The sale leaves UKAR with almost £56bn of residential mortgages to either sell or run-down, and will help UKAR rope in a profit of £55m.

JPMorgan stated that it will syndicate the portfolio as residential mortgage-backed securities to a group of global investors.

The mortgages will be transferred to Commercial First over the next one year.

Prior to this, UKAR has sold portfolios to Virgin Money and private equity firm J.C. Flowers.

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