B&B counts £700m cost from defaults - papers

Richard Pym, B&B's chairman, told The Times that the proportion of borrowers more than three months behind on their repayments had worsened since March, when B&B reported an arrears rate of 4.6 per cent, itself double the 2007 figure. "It's now above 5 per cent," Mr Pym said, "and it will continue to deteriorate for the remainder of the year." He estimated that loan losses this year would be between £600 million and £700 million, up from £500 million last year, as thousands more amateur buy-to-let landlords and self-certified borrowers get into difficulties. Full story...