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Mortgage Arrears More Than Double At Bradford & Bingley

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B&B blames fraud and professional negligence for the bulk of these losses,

I wonder if they are referring to their own professional negligence, or someone else's?

while also taking into account house price falls that are greater than general market estimates.

:lol:

Where do they get their market estimates from, the local estate agent?

Edit - for lots of lolz at BTL :lol::lol::lol:

Edited by Crash Gordon

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http://www.ifaonline.co.uk/ifaonline/news/...radford-bingley

Bradford & Bingley (B&B) says mortgage arrears at the firm, which was crushed by the financial crisis last year, more than doubled in the first half of 2009.

right

Mortgage payments at least three months late rose to 5.88% in the first half of this year, up from 2.48% in H1 of 2008. :lol:

5.88%. That is enormous!

Still, it's quite obvious property prices will keep going up tough.

It is, isn't it?

Well, isn't it?

No?

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P.S. How long till those in areas turn into repos? I'm getting bored of spring (and summer) bounce.

Isn't it something like up to two years thanks to Gordon?

If we ignore the repossess-to-rent shenanigans, it looks like we have to wait until 2010 for that supply to materialise.

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Guest happy?
Isn't it something like up to two years thanks to Gordon?

If we ignore the repossess-to-rent shenanigans, it looks like we have to wait until 2010 for that supply to materialise.

They must start to feed their way into the system this autumn surely. The pre-action agreement that the government signed everyone up to (i.e. exhaust all avenues before repossession) must be grinding to toward the inevitable for larger and larger numbers. Time will tell.

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http://www.ifaonline.co.uk/ifaonline/news/...radford-bingley

Bradford & Bingley (B&B) says mortgage arrears at the firm, which was crushed by the financial crisis last year, more than doubled in the first half of 2009.

right

Mortgage payments at least three months late rose to 5.88% in the first half of this year, up from 2.48% in H1 of 2008. :lol:

Why do you take such joy in this news?

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They must start to feed their way into the system this autumn surely. The pre-action agreement that the government signed everyone up to (i.e. exhaust all avenues before repossession) must be grinding to toward the inevitable for larger and larger numbers. Time will tell.

tick tock tick tock... the sound of inevitability. It's so amusing to see the bulls get all excited by statistical bounces when the tsunami is slowly making its way towards them. We live in la la land, eerie.

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http://business.timesonline.co.uk/tol/busi...icle6797009.ece

Bradford & Bingley, the nationalised mortgage lender, has laid bare the dire state of its loan book and said that a rising wave of fraud dragged it to a £160 million loss for the first half of the year.

The figures came the Council of Mortgage Lenders warned that the economy remained fragile and predicted that repossessions and arrears would continue to climb this year.

The CML has forecast that 65,000 people will lose their homes this year, up from 40,000 last year and just under 26,000 in 2007.

B&B, which was the UK’s largest lender to landlords before it was broken up and its mortgage book nationalised last September, said yesterday that 40 per cent of its mortgage book was in negative equity, up from 30 per cent at the end of 2008.

Impairments on bad loans ballooned from £75 million last summer to £328 million.

B&B has 60 per cent of its book in buy-to-let and 20 per cent in self-certified loans, sometimes called “liars’ loans†as borrowers did not have to provide proof of salary.

B&B, which flagged up a spike in fraud last year, warned that the trend was rising, and increased its provision by almost £100 million between January and June.

That brings the total provision for fraud and professional negligence to £271 million, a figure described by an industry insider as “extraordinaryâ€.

As well as some customers apparently lying about their income, there is evidence of cases of property valuers and solicitors falsely inflating the value of properties, B&B said. Some of the fraud-related loss may be reclaimed on insurance policies, it added.

Customers falling more than three months behind on repayments rose to 5.88 per cent of the book, from 4.6 per cent at the year-end.

Richard Banks, a mortgage industry veteran who joined B&B as managing director three months ago, attempted to strike an optimistic note by echoing the sentiment of Lloyds last week that the worst was over. “Arrears appeared to have peaked and started to go down modestly in the past two months,†he said.

The Government sold B&B’s £21 billion of deposits to Spain’s Santander but could not find a buyer for its £41 billion mortgage portfolio and was forced to nationalise it.

Excellent news for the taxpayer, the govt clearly has bought quality.

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Aren�€™t hopes and dreams fragile ?

Ha!!! Are we surprised??

No!

And I'll bet you it's far, far worse - and this is just B&B! There are all the others!!

As I have said for 6 years now; Mortgage Fraud/Liar Loans = The Biggest Elephant in the Room, Ever.

:rolleyes:

http://business.timesonline.co.uk/tol/busi...icle6797009.ece

----------------------

"Impairments on bad loans ballooned from £75 million last summer to £328 million.

B&B has 60 per cent of its book in buy-to-let and 20 per cent in self-certified loans, sometimes called “liars’ loans†as borrowers did not have to provide proof of salary.

B&B, which flagged up a spike in fraud last year, warned that the trend was rising, and increased its provision by almost £100 million between January and June.

That brings the total provision for fraud and professional negligence to £271 million, a figure described by an industry insider as “extraordinaryâ€.

As well as some customers apparently lying about their income, there is evidence of cases of property valuers and solicitors falsely inflating the value of properties, B&B said. Some of the fraud-related loss may be reclaimed on insurance policies, it added.

Customers falling more than three months behind on repayments rose to 5.88 per cent of the book, from 4.6 per cent at the year-end."

-------------------------------

F**K ME! Incredible. Beyond words.

Are B&B seriously thinking that we're going to believe that they DIDN'T KNOW about this?? :wacko::wacko::wacko:

That they didn't ACTIVELY ENCOURAGE this?? :angry: :wacko::D

-------------------------------

"Richard Banks, a mortgage industry veteran who joined B&B as managing director three months ago, attempted to strike an optimistic note by echoing the sentiment of Lloyds last week that the worst was over. “Arrears appeared to have peaked and started to go down modestly in the past two months,†he said."

-----------------------------

:wacko::wacko:

Words fail me. Honestly.

EP

Edited by eric pebble

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Guest KingCharles1st

Quite possibly what is going on in a lot of these cases would be the way a personal bank account is actually managed by both the client and the bank/B.S.

Example- somebody goes overdrawn by 30 quid because when the amount shown on their balance at the cash machine on Friday night doesn't truly reflect the fact that there is a cheque for 40 quid waiting to be honored, and one for 50 quid waiting to be cleared. You get the Picture.

Before one can say Jack Robinson, they are fitted up with 60 quid if bank charges, which means there is 20 quid not enough to pay the mortgage direct debit. bugger- this also incurs a fee, and they pay in 100 quid from mum, and then that goes on 2 other d.d.'s and now they take the mortgage again ad its 70 quid light and it doesn't go through- etc etc ad nauseum.

The Banks feel this is a perfectly acceptable way to operate, and faced with shit like this, it doesn't really matter for people in a situation like this what interest rate their mortgage is.

I think it is time for the finance houses and Government to start looking at the other end of the problem- they can't sort or understand the end they are currently looking at.

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Ha!!! Are we surprised??

No!

And I'll bet you it's far, far worse - and this is just B&B! There are all the others!!

As I have said for 6 years now; Mortgage Fraud/Liar Loans = The Biggest Elephant in the Room, Ever.

:rolleyes:

Eric, let`s not forget that those who were honest on their mortgage applications (I know you probably think there weren`t any, but I`m sure that a lot were) were also affected by the likes of B&B. "Competing" to buy a property against someone who lies about their income will mean that the honest borrower will have to borrow more, or miss out.

It is f*****g outrageous that this sort of activity took place under the watchful(?) eye of the FSA. The way house prices were going up, meant I could sense that there must have been some pretty dodgy dealings going on, and my sense has been proven correct.

Despite what has happened, there seems to be a massive cry for a return to "normal" lending. When will people wake up and realise what`s been going on ?

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snip

Some of the fraud-related loss may be reclaimed on insurance policies, it added.

snip

er, why arent the criminals being chased by the CID and the ill gotten gains sold off and returned to the society....or are solicitors and valuers, being professionals, above the law?

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http://business.timesonline.co.uk/tol/busi...icle6797123.ece

"B&B, which was the UK’s largest lender to landlords before it was broken up and its mortgage book nationalised last September, said yesterday that 40 per cent of its mortgage book was in negative equity, up from 30 per cent at the end of 2008."

How many of these are about to turn in their keys? 40% negative equity is huge, and so soon in the down cycle.

Edited by Realistbear

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http://business.timesonline.co.uk/tol/busi...icle6797123.ece

"B&B, which was the UK’s largest lender to landlords before it was broken up and its mortgage book nationalised last September, said yesterday that 40 per cent of its mortgage book was in negative equity, up from 30 per cent at the end of 2008."

How many of these are about to turn in their keys? 40% negative equity is huge, and so soon in the down cycle.

lol , not to worry you can cover any defaults with your taxes

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