Bradford & Bingley has head-start on credit crunch

As the global credit squeeze continues, Bradford & Bingley (B&B) has claimed that its secure finance will give it the advantage over its rivals. Chief executive, Steve Crawshaw, said Bradford & Bingley has been resilient and resourceful through the current market turmoil.

The buy-to-let specialist mortgage lender added that it has successfully funded the bank in very challenging conditions and finalised the disposal of non-retail loan portfolios in line with its strategic focus on retail mortgages and savings. The group is now even better placed to take advantage of opportunities in the market.

Furthermore, the company expects profits to be in line with City forecasts at around £357 million this year. It has dismissed concerns about the strength of the buy-to-let market which has seen competitors suffer.

Last week, Paragon, the UK’s third biggest provider of buy-to-let mortgage schemes said it is experiencing cash flow problems, with reserves down by as much as 40% as a result of the credit squeeze.

B&B said it is confident about the demand for buy-to-let mortgages. Rental levels are increasing and landlords continue to add to their property portfolios and uncertainty in the housing market should drive further demand.

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