View more on these topics

Bradford & Bingley to sell its housing association loan book to Dexia

Bradford & Bingley has agreed to sell its £2.2bn housing association book to Dexia, following a review of the assets.

The book is being sold for cash proceeds representing the book value of the loans transferred, adjusted to reflect break-funding charges. In 2006, these assets contributed approximately £21m to Group profits.

Bradford & Bingley says selling these assets enables it to focus its activities on profitable growth in the core business of residential mortgage lending and retail savings. It adds the cash proceeds will further increase its liquidity and provide funding for attractive, higher margin opportunities in these markets.

Bradford & Bingley group chief executive Steven Crawshaw says: “The board concluded back in April that the sale of our housing association book was a natural step in the development of Bradford & Bingley’s strategy. It enables us to improve returns by redirecting our capital and funding resources to take advantage of the significant opportunities that exist in the UK mortgage market today.”


Broker talkback

Did you complete Aifa’s retail distribution review survey to help it shape its response to the FSA?Yes 12%No 88%No “Because we are halfway through completing our own response to the FSA>”Peter Kennedy, Forward Planning Independent Financial Consultants No “I have not had any information through about it.”Graham Carver, York Financial Management “No, I haven’t received […]

Central line

Too little attention in the RDR debate has been focused on the consumer. Ultimately, there is a need to look back at the RDR and its core objectives. There is a need to make sure that we get a better and not just different outcome from this review. There must be a recognition that consumers share responsibility. We, as IFAs, have a unique level of access to consumers’ wants and needs.

Struggle for satellite packagers

Personal Touch Packaging managing director Rob Jupp believes lenders should not be criticised for cutting satellite packagers out of their distribution channel.Speaking at the Mortgage Business Expo, Jupp said he does not see a future for satellite packagers and considers that franchise partners are a much better solution. Satellite packagers repackage products for other firms.But […]

Low bids see Rock’s share price plunge

Northern Rock’s share price fell to an all-time low on Monday after the firm said potential bids valued it at “materially below” its market price.A Treasury statement saying it might not guarantee the Bank of England’s loans past February helped spark the sell-off although the Treasury signalled that it was willing to discuss any proposals […]

Investment Forum

Position Portfolios for a Changing China, Accelerating Disruption and More Political Discourse Is China an asset class? Why Investors’ Understanding of China is Changing How is disruption changing the way we invest? Established Ways of Doing Business Are Being Challenged What to Watch: Why politics matters more than ever in 2017 Key takeaways: Despite volatile […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment