Tuesday, April 22, 2008

Bradford & Bingley in the doo-doo

Bad news, BTL demand remains strong

B&B is the market leader in Buy-to-Let mortgages which offer customers 100-1000% gearing into a declining asset class where none of the risks of leverage have been explained. BTL also offers investors a huge negative carry trade with average net property yields in the UK being 3.75% and mortgage finance now coming at almost double that. Self Certified mortgages (liar loans as the Americans appropriately call them) where B&B takes no income verification at all are at best going to see the income of the borrower be at its weakest when the collateral value is at its weakest as overtime and bonuses diminish with a weakening economy.

Posted by little professor @ 10:24 AM (637 views)
Please complete the required fields.



3 thoughts on “Bradford & Bingley in the doo-doo

  • LP – Virgin Money rumoured to be in bid approach for B&B – I’ll put up a seperate post.

    Reply
    Please complete the required fields.



  • B&B – what’s that? Broon & Badger? Sounds like their business model.

    Reply
    Please complete the required fields.



  • Not sure how demand can be that robust, unless the investors are happy to lose money. Or maybe the “landlords” are one of these dubious property agents.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>