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Bradford & Bingley says arrears up in Q1

Bradford & Bingley has confirmed that arrears levels have continued to rise in the first quarter.

In its Interim Management Statement, the lender says that combined with its current assumption that house prices will fall in 2008 this has resulted in higher credit impairment provisions.

It says: “We have significantly increased our management focus on collections processes and treatment of arrears cases in light of the tightening credit conditions.”

B&B says that its £2bn committed funding facilities have not been drawn.
It says that during the first quarter, its business levels were lower than the same period last year as it repriced its mortgage products to deliberately regulate volumes and widen new business margins.

B&B has increased minimum credit requirements and selectively lowered maximum loan to value levels in order to engance business quality.

It says that as a result its new business pipeline is below the same period last year but in line with its plan for 2008.

Group chief executive Steven Crawshaw says: “The first quarter of 2008 has seen excellent growth in our retail deposit base. Bradford & Bingley has a strong capital base and has funded its business activities through 2008 and into 2009. We have a focused strategy, and a business model that is adaptable to changing market conditions.”


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