Bradford & Bingley plc is pleased to announce that it has today purchased a mortgage loan portfolio from GMAC-RFC for a consideration of around £729 million. This is the second purchase resulting from an agreement announced in January 2006 to acquire up to £1.4 billion of loans during 2006 from GMAC-RFC.
The purchase, funded from Bradford & Bingley's existing resources, has been made by Mortgage Express, its wholly owned subsidiary.
This latest loan portfolio acquisition will increase the Bradford & Bingley Group's total managed assets, which stood at £40.8 billion on 31st December 2005, by around 1.79%.
All lending in the portfolio is secured on UK residential property and has a similar credit risk profile to previous portfolio acquisitions. In addition to reviewing the credit controls GMAC-RFC employed in originating the loan portfolio, Mortgage Express has tested the loan book using its own credit scoring process to confirm that it meets the Bradford & Bingley Group's credit standards. The acquired mortgages are, by value, approximately 8% buy-to-let, 63% self-certified with the remainder standard mortgages. The book has an average loan size of approximately £142,000 and an average loan to value of approximately 77%.
Note
The consideration figures include the assets purchased and a premium payable to the seller.
Contacts:
Investor Relations
Katherine Conway
+44 (0) 1274 554928
katherine.conway@bbg.co.uk
Media Relations
Nickie Aiken
+44 (0) 20 7067 5632
nickie.aiken@bbg.co.uk
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