Potential takeover of B&B - buy to let mortgages

23 September 2008

The Financial Services Authority (FSA) is attempting to find a buyer for Bradford & Bingley (B&B), one of the UK's biggest buy to let mortgages lender.

It is understood that the FSA has approached Dutch bank ING, National Australia Bank - which already owns the Yorkshire and Clydesdale banks - and Abbey owner Banco Santander.

Sources from B&B have insisted that the company's finances are stable, despite a fall in its share price last week.

It comes after several financial institutions have been taken over by larger firms or rescued by governments in a bid to provide stability.

Halifax Bank of Scotland (HBOS) was able to merge with Lloyds TSB after the government waived competition laws in order to prevent a Northern Rock-style run on the bank.

Welcoming the measure, chairman of HBOS Dennis Stevenson said: "Against the backdrop of the very high levels of volatility our industry is experiencing, the combined group will be one of the strongest players in the UK financial services sector".