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  1. #1
    Join Date
    Sep 2003
    High up above and deep down under

    Default B&B: 'We have seen the trough'

    B&B: 'We have seen the trough'
    11th Aug 2005, a Thursday

    Bradford & Bingley have declared the slowdown in mortgage lending over, as the bank announced a small rise in interim profits on the back of lower costs.

    "People are much more confident about the second half - I think we have seen the trough," said Steven Crawshaw, Bradford & Bingley's chief executive. "The trough. . . has been a relatively shallow one."

    Profit before tax rose 6.1%, one year ahead of schedule.

    "In essence we're at the end of that cost programme and you should regard our cost base as now being the base to move forward from," said Mr Crawshaw.

    The bank, which has about 20% of the buy-to-let market, said that buy-to-let loans should grow ahead of the mortgage market and that analysts' pessimism on the sector had been overdone.

    "People are beginning to discount the story that buy-to-let investors are going to absent themselves from the market on one given Tuesday," said Mr Crawshaw.

    Gross new residential lending was £2.5billion in the first half compared with £4.1billion a year ago. Net interest income rose 3.4% to £224.2m in the first half. However, the margin fell to 1.19% compared with 1.23% in the first half of last year.

    News source:
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  2. #2


    This is pretty typical of articles you find written by banks, and I would view them more as marketing than a true reflection of the market.

    The UK property market(s) is/are so diverse, general statements like this are next to useless if you're looking for any locally relevant information. Also, because it takes anything up to 6 months to buy a house, and one in 3 deals fall over before completion, it really depends on whether they are talking about mortgage applications or actual mortgages drawn down, which is often not stated. Furthermore, size of mortgage has nothing to do with purchase price, as it's not stated if these increased volumes are attributable purely to buy-to-let, re-mortgages (given the recent rate cut) or people upgrading their homes. Also, perhaps the increased mortgages amounts are due to increased market share, and the overall market is going down??

    I would describe this article as 'fluff'

    The Dog

  3. #3
    Join Date
    Sep 2003


    I speak to a lot of investors in the UK and haven't heard much optimism for the local market for quite some time now. I'd agree this article is more a marketing ploy than an objective statement of fact.



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