Despite the fact that buy to let landlords are catching up on their repayments according to the Council Of Mortgage Lenders, Bradford and Bingley are still looking in very poor shape.
According to a recent article in The Telegraph, the state owned mortgage lender posted a horrific loss of one hundred and sixty million pounds in just the first six months of this year.
This is the first time that the true extent of the trouble faced by Bradford and Bingley has been known as despite the fact they were obviously floundering they posted a one hundred and thirty million pound profit last year.
This was due to the sale of 197 branches to the Abbey and also the selling off of its 20 bn deposit book. Now it is easy to see why these measures were necessary.
The losses faced by this group are largely no threat to the tax payer because of the fact they will largely be borne by the financial services compensation scheme under terms agreed at its nationalizsation last September.
The fact that the organization has posted bad debt figures of 328 million in the last six months is cause for comment though as you have to ask how such a terrible and one would think irreversible situation was allowed to occur in a lender that had years of trading experience.
