The U.K. government will redeem £3 billion ($3.9 billion) of bonds backed by mortgages from rescued lender Bradford & Bingley, paving the way for a potential sale of the loans.

The notes will be paid back in full on Sept. 20, according to statements on Friday. The Aire Valley Mortgages securitizations mainly package buy-to-let home loans made by Bradford & Bingley before its nationalization in 2008, based on Moody's Investors Service data.

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