Representing 2 per cent of its mortgage business, the portfolio's assets earned net interest income of £34 million during the twelve months to 30 June 2007.
However, Northern Rock said that the interest they were to accrue in the coming twelve months would have been significantly less - prompting the sale as part of its strategic review.
JPMorgan reportedly paid a cash premium of 2.25 per cent over the balance sheet value of the portfolio, approximately £50 million.
Northern Rock will however continue to service the Lifetime Portfolio on behalf of JPMorgan and continue to originate Lifetime loans to its balance sheet.
Northern Rock's CEO, Andy Kuipers said that it was a relatively small transaction for the bank and ultimately a positive one.
"It illustrates the quality of our assets, which has enabled us to achieve a sale at a premium despite continuing difficult financial markets, and will allow the Company to reduce its debt to the Bank of England.”
