Report B&b Mortgage Book Implodes in House prices and the economy Posted June 3, 2009 'ok 95% of loans at 2.99% = about 3% of the capital is returned. deduct the 5% of capital that is now needing to be offset as potential write off, and we see a loss of 2% and a further set aside of vital capital. call your yourself a bull, you have no idea'. ......Excellent way of looking at this. I think most loans will be at higher interest rates than 2.99% so it is probably not this bad YET. As interest rates rise the BTL excrement will come into contact with the fan. Stand clear!