Article Sphere Logo

Bradford and Bingley

By Expert Author: Ruth Jacob | Article Abstract
Word Count: 419 words | Views: 77 view(s)
One of the UK’s biggest joint, buy-to-let mortgage providers, Bradford and Bingley, (B&B) has been in the news recently for numerous reasons, included the resignation of the company’s chief executive, Stephen Crawshaw, down to ill health. This coincided with news of a takeover of the company, by a US private equity firm.

The mortgage specialist had not clarified whether Mr Crawshaw has stepped down of his own volition, or whether his contract was terminated. He had been in the post since 2004, having joined the company in 1999. He had previously served at Cheltenham and Gloucester and Lloyds TSB.

Mr Crawshaw has been in the firing line in the last few weeks, having been forced to apologise over a perceived 'u-turn' regarding the lender's financial position. Having ruled out a rights issue in the previous month, he revealed shortly after that the company would be pursuing a £300million rights issue.

The company, which set out to announce a profit warning today, as it appears unlikely to meet analysts' earlier approximation of between £160million and £200million in profits. The company recently revealed that bad debts rose by more than 40 per cent last year.

Meanwhile, it is believed that US private equity firm Texas Pacific Group is to acquire a 23 per cent stake in the company. It is expected to invest funds worth approximately £180 million; however, the news, coupled with the announcement of Mr Crawshaw's departure, led to a major decline in share prices.

Existing shareholders are likely to be asked to buy shares worth approximately £260million in order to strengthen the company's balance sheet. The mortgage lender made a pre-tax loss of £8million between January and April but is set to raise more capital than previously anticipated with the help of Texas Pacific Group; around £400million in total, according to estimates.

Head of savings at moneysupermarket.com, Kevin Mountford, said: "The latest news from Bradford and Bingley will do nothing to ease the growing uncertainty in the market generally. This ex-building society has seen its shares go into freefall over the past 12 months and recently launch a rights issue.

He added: "Although a number of banks are suffering, as far as B&B is concerned, TPG's interest could be seen as a positive and an indication the worst is behind it.

He concluded: "That said, understandably consumers will remain wary. Anyone with concerns would be wise to spread funds across a range of savings brands to ensure no more than £35,000 is invested with a single provider."
Ruth Jacob

About the Author/Author Bio

Ruth is an author of several articles pertaining to Mortgages. She is known for her expertise on the subject and on other Business and Finance related articles.

Article Source: http://www.articlesphere.com/Article/Bradford-and-Bingley/150483

Article Tags: mortgage, buy-to-let, equity

Article Submitted: 2008-06-27 | This Article has been viewed 77 times.

Rate Article

Related Videos

Learn about Mortgage Rates and Points
Home Loan Mortgage Choices for your Next Home
How to Lock Your Mortgage Rate Before Lender Hikes It
Your Mortgage Decision And Discipline
Your Mortgage Decision And Protection
 

More "Mortgages Refinance" Related Articles

 
 

Listed below are more articles related to the above article from the "Mortgages Refinance" article category.

People interested in the above article "Bradford and Bingley" are also interested in the related articles listed below:

 
The global financial crisis has left lots of borrowers out of luck when it comes to buying the commercial property that they need or want. As many as eighty percent fewer commercial property loans are now being written than than before. If you have been rejected by a lender and are looking for an alternative funding source to buy your commercial property, you should consider a private commercial mortgage lender.
If your past mistakes led you to foreclosure, you probably feel like the weight of the world is on your shoulders and that you may never qualify for a home mortgage again. The truth is that obtaining a home loan post foreclosure requires a bit of legwork, but can be accomplished. Thousands of current homeowners have been through a foreclosure before.
"Blessed are the young," says Herbert Hoover, "for they shall inherit the national debt." Debt, in whatever language or guise, is bad. But what if you've incurred debts and find it hard to dig yourself out of them? Does this mean you are forever disqualified from owning a home? Some would say yes. Bad credit loan mortgage rates show otherwise.
With the government now putting policies in place to stimulate the housing market, this could be a great time for potential home buyers to find the home they have been looking for. A mortgage broker can be a good choice in helping these buyers find the mortgage they seek.
You decide it's time to go shopping for a home mortgage. The instant this decision is made, a feeling of dread washes over you. The same old questions thump inside your brain. How do I compare home loan interest rates? How will I know a fair rate when I see one? The where, what, how and why of home financing will have you so mind boggled you will soon be tearing your hair out in despair.
With the commercial real estate market about to go into a crisis that may actually even be worse than the one experienced by the housing sector, it is easy to figure out the reasons why the bank regulators have urged the lenders to enhance their efforts in finding ways to approve a commercial mortgage modification for their property owners on the brink of foreclosure. The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and other financial regulators are worried that the stability of the financial institutions could easily crumble with the onset of the upcoming wave of defaults by commercial property borrowers.
Financial analysts have been predicting that the commercial property sector will also undergo a crisis that might even be worse than the collapse experienced in the residential housing market. The increasing number of vacancies in commercial properties and the unchecked increase in the unemployment rate are harbingers of potential serious problems in this particular market.
 
Article Directory Home All Categories Finance Mortgages Refinance
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish