PetesDad

£8m pre-tax loss in the first four months of 2008, compared with £108m profits the same time last year.

Buy-To-Let Mortgages in trouble.

BBC NEWS | Business | B&B sees loss in wake of downturn

Not another Nortern Rock hopefully!!

Coffin Dodger

Look Pete get your facts straight before the usual cr*p doom and gloom posts you make

Yes B&B could have been going the same way as NR, however it looks like they are prepared to address the issue rather than hiding their heads in the sand NR stylee.

Therefore nothing to worry about. I'm sure TPG would not be investing £179m if it was all about to go **** up

Petem95

BBC NEWS | Business | B&B sees loss in wake of downturn

Things aren't looking too healthy, as expected!...

EddScott

Personally, I'd be tempted to take a punt on B&B if I had some spare dosh.

Petem95

I thought that with NR, and did..... didn't pay off B&B could be worth a gamble tho

I closed my B&B, A&L and NR accounts earlier this year (or at least took out most of the money, leaving only enough to keep the accounts open incase any of them get bought out resulting in a windfall for customers... )

Skoobie Dhu

iTrader: (3)

B&B's problems aren't completely linked to the global credit crunch - much of their problem is their large exposure to 'buy to let' mortgages and the fact that an increasing number of these type of lenders aren't able to cover their payments from rent any more.

I wonder if some of the numpties from C4's Property Ladder who ammassed huge property portfolios by remortgaging have been caught out - that would be shame, wouldn't it

Paul3446

I think it's a bit unfair comparing Pete with Fraser from Dad's Army!


Fraser is a ray of sunshine compared to Pete!

EddScott

Possibly, but at least they got up close and personal with the best breasts on the telly.

lozgti

people getting in a mess simply used to go off and get a new mortgage.They can't do that as easily as they once could.

Funny,no one really considered that anyone would ever have a problem paying these mortgages,normal ones or buy to let.

There will be loads more jolly news to come out I reckon in the banking sector

Chris L

I would broadly agree.

On the original point of this thread, there is a considerable difference between an organisation that has to go cap-in-hand to the government to continue operating (Northern Rock) and one that has suffered a dent in their profits and has found that its reserves are a little low (B&B). As an organisation, you could argue that they are taking the right steps now.

I've got a savings account with B&B and I've not seen or read anything over the last fews days that makes me believe it will turn into another Northern Rock fiasco.

fatscoobfella1

iTrader: (1)

I have an A&L account,and a loan from them too... So what happens if they go pop..??
My loan is slightly higher than my balance,so what do i do ???

PetesDad

I hope you are all correct and B&B will be fine.

Marking posts unwanted just because you don't agree with the contents is childish, futile and amazing (in a sick way).

My post above was reporting the news

Coffin Dodger

And scaremongering, hence the deserved negative feedback on your post

PetesDad

I see ..... so, your post here:-

https://www.scoobynet.com/non-scooby...ml#post7915467

Where you suggest that you would like to 'bone' the women on display is the model post? That should be Infracted for the image it has put into my head!!

-----------------------------------------------------------------

Returning now to sensible discussions:-

"Bradford & Bingley is particularly exposed to specialist mortgage lending, including buy to let (where it is the market leader), self-certification (alias ‘liar loans') and negative-equity and 100%+ loans.

The big worry for Bradford & Bingley (and other mortgage lenders and property investors) is that its buy-to-let business model has never been stress-tested in a housing downturn. B&B is the UK's largest lender in the buy-to-let sector, with a share of a fifth (20%) of this £120 billion market.

Buy to let really thrived during the twelve-year housing boom which began in the mid-Nineties. But will buy-to-let investors hold their nerve if house prices fall between 20% and 30%? Homeowners will do almost anything to keep the roof over their head, but will amateur landlords be tempted to walk away when times get tough?"

lozgti

I have no sympathy with buy to letters.

Most I know bought with minimum deposit (which I know is reasonanble size) and just assumed a tenant would come in,pay the rent and hence be paying the mortgage and the house would go up in value.

An awful lot of flaws with that plan now

PetesDad

Quote:- "You'd have to be a very brave investor to buy shares in Bradford & Bingley at present. The long-awaited housing-market downturn has only just begun, and the UK economy has yet to go into recession. Nevertheless, B&B is already showing signs of financial strain, even though the worst is still yet to come"

Source:- Bradford & Bingley & Broken? - 02/06/2008

Coffin Dodger

Ohhh stalking me are you Infact away, oh but you can't because your old account with infraction rights got perma banned

That post was a bit of fun in the general scheme of that thread, it was not serious. Whereas you are just posting the usual old Dail Mail / Express reader sh*te that caused all the old folk to be queuing round the block when NR first showed signs of wobbling

lozgti

Hmmm.I know no one likes to see a bank go down but did the government do all their huffing and puffing and guarantees following NR because they knew lots of scenarios like NR were coming?

Spices up the news though when banks are getting a kick in the goolies

richardg

i wouldn't have put it quite so bluntly, but was just thinking the same.

that said pete, forums would be boring places if we all thought the same

Deep Singh

Eh? You don't get a windfall if you happen to have an account with a bank that gets bought out do you? I thought it was only if you were a shareholder

richardg

often you can, but they usually stipulate "balances in excess of £x" only

lozgti

They seem to be the focus of the 'boom is over' story.Looks like all the mortgage frauds are emerging too

COLUMN-British boom unravels | News | Reuters

Think this will be more interesting than Northern Rock saga

PetesDad

Careful about what you post on SN ....... the 'thumbs-down' kiddies will get to work on you - it's not what they want to hear see??

Now, post a ***** shaped carrot and you will be their darling

The future looks bleak for the economy and house prices in particular - which will assist everyone bar those wishing to move downwards

Petem95

I thought they based it on how long you'd had an account with the bank?....

richardg

that has been the case with some, but with others it's been a matter of whether or not you actually have any cash in their system (ie to weed out the carpet baggers)