Arrears up at Bradford and Bingley

Apr 22 2008 by Henryk Zientek, Huddersfield Daily Examiner

BRADFORD & Bingley today reported “robust” demand for buy-to-let mortgages, but warned that arrears levels continued to rise.

In an update before its annual meeting, the mortgage specialist said it continued to fund operations “successfully” – helped by a £1.9bn increase in savings deposits so far this year.

Last week, B&B denied that it needed to raise funds through a right issue. It repeated today that it was funded into 2009 and was well served by its funding sources.

Lending volumes for the first quarter of 2008 were lower than the same period last year after B&B re-priced mortgage products to cope with demand.

B&B said arrears levels continued to rise in the first quarter, reflecting “increasing payment strain”.

B&B said it had lifted minimum credit requirements and lowered maximum loan-to-value levels.