B&B racks up £27m in losses

Bradford & Bingley (B&B) chief executive Richard Pym has a job laid out for him following the buy-to-let specialist’s deeper plunge into the red at £26.7m from mortgage losses and fraud compared to a profit of £180.4m in the same period last year.

An £18m provision was needed to cover the mortgage fraud, lifting the lender's credit impairment charges for the six months, to £74.6m, from £5.3m in the same period last year, the Guardian reports.

B&B revealed a £15m charge to cover losses from fraud in June when finance director Chris Wilford said no new scams had been discovered since then, however another £3m against accrued arrears was needed to cover more losses.

Chairman Rod Kent said most of the scams uncovered in the last six months could be traced back to mortgage professionals and had been discovered as a result of falling house prices. He said the alleged culprits were being pursued by the police and the regulator.

Further reading:

Overview: anyone for Pym?

B&B in safe pair of CEO hands

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