Monday, Mar 30, 2009

A one per cent write down? It's a start, I suppose.

Metro: Bradford and Bingley writes off £500m in bad mortgages

Nationalised lender Bradford & Bingley said today that it was writing off more than £500 million in mortgage loans turned sour. B&B is taking the charge of £507.7 million to reflect estimated arrears at the end of 2008 and the impact of further house price falls ahead. The hit compares with a £22.5 million provision for the previous year. The firm said 4.6% of its £41 billion mortgage book was three months or more in arrears, or repossessed.

Posted by mark wadsworth @ 12:52 PM (753 views) Add Comment

6 Comments

1. little professor said...

A drop in the ocean. They are obligated to buy $4.1billion in toxic mortgages from subprime lender GMAC, which already has double the arrears rate of most lenders.

http://www.bloomberg.com/apps/news?pid=20601102

Monday, March 30, 2009 01:45PM Report Comment
 

2. mark wadsworth said...

LP, thanks, most helpful.

Monday, March 30, 2009 02:33PM Report Comment
 

3. mander said...

How much will they write down if a 55% fall in house prices will be recorded?

Monday, March 30, 2009 03:29PM Report Comment
 

4. timmy t said...

LP - I seem to remember reading somewhere that they had negotiated their way out of that obligation. I might be wrong though.

Monday, March 30, 2009 09:20PM Report Comment
 

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