View more on these topics

Lenders tee-up Bradford & Bingley financing deal

Home-House-Monopoly-Money-Property-700x450.jpg

Five British banks and a building society are reportedly offering around £17bn of financing in a bid to help the Government sell the remnants of Bradford & Bingley.

The Government has been seeking to dispose of assets acquired during the financial crisis, including auctioning a £13bn package of Northern Rock loans last year.

And now Sky News reports that six lenders are to present the Government with a proposal to establish a special purpose vehicle to house the loans ahead of a possible sale.

The banks – Barclays, HSBC, Lloyds, Santander and RBS – and Nationwide will reportedly offer £17bn of financing to the eventual purchasers of the loans as part of a project to end their own exposure to interest on the loans used to fund it during the financial crisis.

B&B interest last year alone totalled £400m, Sky News reports.

The Government bailed out B&B in 2008 at the height of the financial crisis, with its mortgage book, personal loan book, headquarters and wholesale liability coming into state ownership.

At the same time, Santander bought B&B’s retail deposit business and branches.

Recommended

Mervyn-King-700x450.jpg
3

Mervyn King: Get ready for another financial crash

Former Bank of England governor Mervyn King warns the world is on the brink of another financial crash because regulators did not properly handle the last crisis. The Telegraph reports that King says since the last crash bankers and regulators have “colluded in a self-defeating spiral of complexity” despite governments and regulators being very active. […]

Paul-Thomas-700.jpg
2

Editor’s note: The new War of Independence

The battle lines have been drawn as the issue of independence reaches the mortgage market. “In providing independent advice, a firm should not be restricted by product provider, and should also be able to objectively consider all types of retail investment products that are capable of meeting the investment needs and objectives of a retail […]

Life cover for life

When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that waybecause before the arrival of RDR in 2013, that’s more or less exactly what they were. For advisers thinking […]