UK Asset Resolution, the body set up by the government to manage the toxic assets resulting from the collapse of Northern Rock and Bradford & Bingley, will close down a north-east England site in a move that will impact 700 staff.

UKAR said in a statement that it planned to withdraw staff from its Gosforth site by mid-2013. It added that the majority of these workers would have the chance to relocate to the nearest UKAR site some 18 miles away.

Our job is to manage the wind down of the mortgage books. By the end of 2013 we expect the number of mortgages to have reduced by 25 percent since UKAR was established. As a consequence, we will need fewer people and it will no longer be cost effective to run the business from three sites, UKAR Chief Executive Richard Banks said in a statement.

Our duty is to deliver value for money for our owner, the UK taxpayer. The loss of some jobs is regrettable but we will work hard with colleagues and the union to relocate people where possible and offer support to those colleagues affected, he added.

(Reporting by Sudip Kar-Gupta; Editing by Myles Neligan)