Newspaper article The Journal (Newcastle, England)

Britannia Profits Fall 38% in Homes Crisis; in Association with RBS

Newspaper article The Journal (Newcastle, England)

Britannia Profits Fall 38% in Homes Crisis; in Association with RBS

Article excerpt

BRITANNIA Building Society has said losses from rising numbers of borrowers falling behind with repayments caused half-year profits to fall 38%.

Britain's second biggest mutual took a pounds 40.4m impairment charge hit in the first six months of the year, up from just pounds 15m a year ago.

Pre-tax profits sunk from pounds 81.7m to pounds 50.5m, with total mortgage lending almost halved as it clamped down amid the credit crunch, to pounds 1.9bn.

Britannia said the bulk of the impairment charge related to its intermediary lender Platform, which offers standard and non-standard loans, including higher risk sub-prime and self-certification mortgages, where borrowers declare their own income. The group said higher loan-to-value loans for first-time buyers and mortgages for new-build city centre flats were seeing the highest arrears and losses. Around 720 homes were repossessed by Britannia in the half-year, of which nearly all - some 700 - related to its Platform lending arm. …

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