Bradford and Bingley arrears drop by 18%
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The number of arrears at Bradford and Bingley has dropped by 18% in the six months up to June 2010.
Cases where arrears and possession cases were over three months peaked at 19,159 at the end of 2009 but fell to 15,653 by June 30 this year.
Arrears cases now account for 4.72% of all their mortgage accounts with £101.3m of arrears debt, representing 0.27% of mortgage balances compared to 0.33% in June 2009.
And the Group returned to profit making £896m, but was heavily boosted by two significant one-off items.
Excluding the one-off sales the profit was £79.4m, compared to losses of £196m in H2 2009.
Richard Banks, managing director of Bradford and Bingley, says: “I am pleased to announce that we have returned to profit and made great progress against all our targets.”
The lender re-introduced the Early Redemption Charge waiver, which contributed to the reduction in lending balances to £37.7bn.
Mortgage redemptions in H1 were £1bn compared to £1.6bn in H1 2009.
Lending balances were reduced by £1.3bn, made up of £1bn of redemptions and £0.3bn of other repayments.
The Balance Sheet provision for residential loan impairment has reduced to £863.3m.
The tier one capital ratio ended the period at 12.1% compared to 8.7% in H1 2009 with no additional funding provided since nationalisation.
Readers' comments (2)
Anonymous | 31 Jul 2010 10:46 pm
hmmmm..could this be because most revert rates are at 1.75% above base.. u would have to be in real personal financial trouble not to be able to cover 2%. lets see what happens when rates starts to move up again... I know it has been said a thousand times before but why should the fecless, profulent banks and buy to let landlords be saved at the detriment of the pensioners and the hard working savers in this world!! is there any justice out there? guess not.
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Anonymous | 2 Aug 2010 10:44 am
Once again the 'clever people' at B&B talking up their 'success.' Has anyone looked into their cost of funds? No, well as a result of their incocmpetence as Lenders most of it is funded by you and me at 0%! Any idiot can make money on a loan book if they're not paying for their funds. Add in the true cost funds and this basket case is so under water it qualifies as a submarine.
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