B&B buys £803m mortgage portfolio - commercial mortgages

07 March 2007

Bradford and Bingley (B&B) has completed the acquisition of a mortgage portfolio from GMAC-RFC in a multi-million pound commercial mortgages deal.

B&B subsidiary Mortgage Express has successfully completed the acquisition of GMAC-RFC''s mortgage loan portfolio in a deal worth £803 million. According to reports the purchase has been funded from existing resources.

It has been announced that the acquisition will result in an increase in total assets by roughly 1.8 per cent to sit at £45.4 billion.

Last month it was announced that B&B saw an increase in second half profits of 48 per cent on the back of higher house prices last year, in turn helping boost lending to buy to let property investors.

Overall, net income increased to just under £123 million from £83 million previously. Loan purchase from other companies forms part of the group''s ongoing growth strategy, entering commercial mortgage deals with a view to consolidating its market position.