Abbey, despite their recent announcements that they would not be offering several popular mortgages United Kingdom options, has managed to trounce their competition. The bank has remained solvent and posted profits, while other mortgage United Kingdom banks have gone under. Analysts believe that this is due mostly to Abbey’s strategy in the mortgage United Kingdom markets. The bank has traditionally avoided giving out too many subprime mortgages and most of the current portfolio is made up of prime mortgages United Kingdom that are not at risk for defaulting. However, this could change as the economic crisis worsens for consumers. The cost of living, food and rising interest rates may burden the mortgage United Kingdom industry even further and even cautious banks may find that they are left holding a very expensive bag, according to these analysts. The lender said: “Abbey’s mortgage book is made up of almost entirely secured prime-residential lending. This means that bank has a stronger risk profile than other residential lending. To date, the difficult funding conditions have had negligible impact on Abbey’s earnings.”A spokesman for Abbey said today: “There will still be good deals on offer, but going forward they will favour the deposit.”
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