Mortgage arrears at Bradford & Bingley, the buy-to-let lender that issued a shock profit warning this month, are shifting upwards, according to the latest data.
The bank was forced to reprice its rights issue this month when it became apparent mortgage arrears were worse than expected in April and likely to rise throughout 2008.
The latest securitisation data from B&B’s covered bond programme, published yesterday, show mortgages one month in arrears have risen to 3.05% of the mortgages in that vehicle in June, compared with 2.86% in May.
However, mortgages three months or more in arrears rose only slightly to 1.78% in June, compared with 1.77% the previous month.
Financial Times
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