Mortgage Giants Bid To Calm Fears
TWO mortgage giants have moved to reassure investors after the Northern Rock crisis.
Alliance & Leicester and Bradford & Bingley both stressed a sound funding platform and healthy retail deposits in trading updates.
Bradford & Bingley expect 2007 underlying profits in line with market hopes and Alliance & Leicester said they would beat expectations.
However, the performances would exclude a combined total of ?137million written off so far on the likes of mortgage backed securities, whose values plummeted in the summer credit crunch same day payday loans.
Buy-to-let specialist Bradford & Bingley said they remained confident in the sector.
They added that the Northern Rock problems could ease mortgage competition for firms with a broader funding base.
Alliance & Leicester said they had maintained strong assets and growth despite “unprecedented conditions” in financial markets.
The share prices of both companies leapt following the updates.