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GE Capital could lose £759m in UK mortgage market

GE Capital chiefs admitted the lender could lose as much as £759m ($1.1bn) in the UK mortgage market over 2009.

At its investor conference in New York yesterday, the Wall Street Journal reported that executives admitted that they expect £385m ($558m) in credit losses this year from its U.K. mortgage business, GE Money Home Capital.

The WSJ says executives predicted that under a worst-case scenario, where U.K. GDP and unemployment turn more negative, 2009 losses could widen to £759m ($1.1bn).

The company stressed that the UK mortgage industry isn’t comparable to the US, so delinquencies here will be much lower for the lender. But it did predict that for the 2009 to 2010 period, GE expects the UK delinquency rate to creep up between 3 and 5 per cent.

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