Although some mortgage United Kingdom lenders managed to avoid getting into the subprime markets to heavily, they are still struggling to remain profitable. One such mortgage United Kingdom lender is Brittania bank, that saw a huge dip in profits, despite the fact that they steered clear of 100% mortgages and the subprime markets. However, the mortgage United Kingdom company did state that it may not be as bad as it sounds and that there is light at the end of the tunnel. They did point out that the arrears they have are a smaller portion of their total loan book.
“The bulk of those arrears are arising on 8 percent of our book. It is a small percentage of our total book that is incurring the arrears — it is contained and it is manageable,” Neville Richardson, Britannia’s chief executive stated.
“We never loaned above 100 percent loan-to-value and very little above 95 percent, and a time when competitors were lending 100 percent,” Richardson added. “The bulk of our book is performing very strongly even in the current circumstances. We have changed our criteria in some of the riskier areas, limiting loan-to-value, types of lending and quantity of lending.”
Related reading: Mortgages United Kingdom
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