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Mortgage Arrears Cause Profit Fears

Profit growth at Bradford and Bingley to slow

27th June 2005

Bradford and Bingley, the UK's 9th largest bank, has confirmed that profit growth is expected to slow this year, blaming a combination of a slow housing market and an increase in the number of buy-to-let customers getting into mortgage arrears.

B&B have a substantial 22% share of the buy to let market, so any changes in the profitability this market hit them particularly hard.

The bank, however, says that likely interest rate cuts later in the year plus government support for buy-to-let should restore profit growth for 2006.

Read More: Money Guardian

More Bradford and Bingley News : 9 out of 10 First Time Buyers Still Struggle,  Bradford and Bingley Fined £650,000 for Mis-selling,  Legal and General, Bradford and Bingley Announce New Business Partnership,  47,000 Missing Out on Bank Windfall

More on Buy to Let : Buy to Let Mortgages at Lowest Level for 2 Years (News, 16/08/2005),  No Growth in Buy to Let Market (News, 27/05/2005),  Buy-to-Let Growth 'Slowing Down' (News, 15/02/2005)

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