Bradford & Bingley has said that the outlook for the mortgage market is improving thanks to a cut in interest rates.
The UK’s ninth-largest bank revealed a six per cent rise in pre-tax profits for the first half of the year to £149.7 million.
Bradford & Bingley's fortunes are tied to the weakening housing market because the bank specialises in higher-margin mortgages for the self-employed and those renting out property.
However the Bank of England’s cut of interest rates last week has improved the bank’s prospects by making borrowing a slightly more attractive option.
“I think we have seen the trough of that [the slowdown in UK mortgage market],” Steven Crawshaw, the chief executive, said during a press conference.
“We found that, buoyed by the interest rate cut of last week, confidence has begun to resume.”
Bradford and Bingley provides almost a quarter of loans to British landlords.To read more about mortgages, click here.
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