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| Bradford & Bingley: Your questions | Bradford & Bingley: Your questions |
| (about 13 hours later) | |
| Banking shares have fallen sharply following the news that Bradford & Bingley (B&B) is to be nationalised. | Banking shares have fallen sharply following the news that Bradford & Bingley (B&B) is to be nationalised. |
| The bank's savings assets are being sold to the Spanish bank, Santander, and the government's taken control of £50 billion worth of mortgages and loans. | The bank's savings assets are being sold to the Spanish bank, Santander, and the government's taken control of £50 billion worth of mortgages and loans. |
| BBC News website readers have been sending in their questions to money expert Christine Ross, from S G Hambros. | BBC News website readers have been sending in their questions to money expert Christine Ross, from S G Hambros. |
| I am anxious to know what happens to the mortgages/families in the 'bad debt bracket' who are struggling with repayments and would be bought out. Will the government having acquired this debt go ahead to repossess? Charles Okwalinga, London | |
| CHRISTINE ROSS: The most important course of action for homeowners who are experiencing difficulty meeting mortgage payments is to contact their lender at the earliest opportunity. Mortgage lenders will usually try to agree a payment plan because the last thing they want is for the payments to cease completely. Lenders will normally only instigate repossession proceedings after having considered other options. | CHRISTINE ROSS: The most important course of action for homeowners who are experiencing difficulty meeting mortgage payments is to contact their lender at the earliest opportunity. Mortgage lenders will usually try to agree a payment plan because the last thing they want is for the payments to cease completely. Lenders will normally only instigate repossession proceedings after having considered other options. |
| Click to hear more of your questions answered | Click to hear more of your questions answered |
| How does this affect people who have accounts and one-year savings bonds with Bradford Bingley International on the Isle of Man? Are their investments safe too? Colin Buckland, Rued-Sir, Luxembourg | How does this affect people who have accounts and one-year savings bonds with Bradford Bingley International on the Isle of Man? Are their investments safe too? Colin Buckland, Rued-Sir, Luxembourg |
| CHRISTINE ROSS: While the full details have yet to be confirmed, it would appear that individual depositors will become customers of Banco Santander. In due course all customers should receive a communication to this effect. Any changes to the terms and conditions of accounts, including interest rates, should be notified in advance. | CHRISTINE ROSS: While the full details have yet to be confirmed, it would appear that individual depositors will become customers of Banco Santander. In due course all customers should receive a communication to this effect. Any changes to the terms and conditions of accounts, including interest rates, should be notified in advance. |
| Does the B&B crisis affect their International banking operations offshore, like the I.O.M where I have savings deposits, and if so what's the risk? Mark Nippard, Penang Malaysia | Does the B&B crisis affect their International banking operations offshore, like the I.O.M where I have savings deposits, and if so what's the risk? Mark Nippard, Penang Malaysia |
| CHRISTINE ROSS: As Bradford & Bingley's savings business is being purchased by Spain's Santander it should be business as usual for individuals with deposit accounts at Bradford & Bingley. In due course each saver should receive full information in writing. Full details of the Government's announcement today can be found at http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2008/press_97_08.cfm. | CHRISTINE ROSS: As Bradford & Bingley's savings business is being purchased by Spain's Santander it should be business as usual for individuals with deposit accounts at Bradford & Bingley. In due course each saver should receive full information in writing. Full details of the Government's announcement today can be found at http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2008/press_97_08.cfm. |
| I'm a fixed rate bond holder with Bradford & Bingley, and an online saver with Alliance and Leicester. The money invested with the two banks amounts to more than the £35,000 limit. Where do I stand, because it will all be under the wing of the bank of Santander.? J Watson, Bury, UK | I'm a fixed rate bond holder with Bradford & Bingley, and an online saver with Alliance and Leicester. The money invested with the two banks amounts to more than the £35,000 limit. Where do I stand, because it will all be under the wing of the bank of Santander.? J Watson, Bury, UK |
| CHRISTINE ROSS: The Financial Services Compensation Scheme (www.fscs.org.uk) will pay out a maximum of £35,000 per person if a bank fails. The Alliance & Leicester is maintaining its separate registration and authorisation as a bank. So you can have an account with both it and the Abbey and have full compensation cover, for both accounts. But the B&B is not keeping a separate banking registration.So if anything were to happen to the Abbey, you would have only £35,000 of cover for your combined Abbey and B&B savings, no matter how many accounts you held. | |
| Six months ago I signed up with B&B for a 5 year fixed mortgage deal, with an option after 5 years to continue at the same rate for a further 5 years. How will I be affected by these changes? Will I have to look for a new mortgage now? Will I have to look for a new mortgage in 5 years? Or will my deal that I signed up for remain exactly the same? What will happen? Sean Talbot, Normanton, England | Six months ago I signed up with B&B for a 5 year fixed mortgage deal, with an option after 5 years to continue at the same rate for a further 5 years. How will I be affected by these changes? Will I have to look for a new mortgage now? Will I have to look for a new mortgage in 5 years? Or will my deal that I signed up for remain exactly the same? What will happen? Sean Talbot, Normanton, England |
| CHRISTINE ROSS: It is difficult to say for sure until all the detail has been communicated. It is possible that your existing 5 year fixed rate deal will be continued until it comes to an end. As far as the option is concerned, this is likely to depend on the wording of the offer and whether this is legally binding on any new lender that acquires the business. | CHRISTINE ROSS: It is difficult to say for sure until all the detail has been communicated. It is possible that your existing 5 year fixed rate deal will be continued until it comes to an end. As far as the option is concerned, this is likely to depend on the wording of the offer and whether this is legally binding on any new lender that acquires the business. |
| As a Saver and shareholder I still have concerns. OK, my savings allegedly will be safe, but I chose the B&B because its accounts, interest rates etc suited me and what I wanted from a Bank. If all these banks get taken over where is the choice and the ability to spread your risk in the future years? Katerina Ayres, Hertford, England | As a Saver and shareholder I still have concerns. OK, my savings allegedly will be safe, but I chose the B&B because its accounts, interest rates etc suited me and what I wanted from a Bank. If all these banks get taken over where is the choice and the ability to spread your risk in the future years? Katerina Ayres, Hertford, England |
| CHRISTINE ROSS: There is still a wide choice of savings accounts available, both on the high street and from deposit takers offering savings via the phone, buy post and on the internet. For some of the best rates available have a look at www.moneyfacts.co.uk | CHRISTINE ROSS: There is still a wide choice of savings accounts available, both on the high street and from deposit takers offering savings via the phone, buy post and on the internet. For some of the best rates available have a look at www.moneyfacts.co.uk |
| I currently have a mortgage with Mortgage Express, which I believe is owned by Bradford & Bingley. Will this affect me in any way? Steven Liversidge, Sheffield | I currently have a mortgage with Mortgage Express, which I believe is owned by Bradford & Bingley. Will this affect me in any way? Steven Liversidge, Sheffield |
| CHRISTINE ROSS: It is likely there will be some change. Do wait as you should receive a communication setting out what, if any changes, will be made. If you have a special deal such as a fixed or discounted rate, then this should continue - but this will depend on the terms of your deal. If you have a standard variable rate then this may change. | CHRISTINE ROSS: It is likely there will be some change. Do wait as you should receive a communication setting out what, if any changes, will be made. If you have a special deal such as a fixed or discounted rate, then this should continue - but this will depend on the terms of your deal. If you have a standard variable rate then this may change. |
| I have a buy-to-let mortgage from B&B. What should I do next? Is there any threat? Jogen Roy, Watford | I have a buy-to-let mortgage from B&B. What should I do next? Is there any threat? Jogen Roy, Watford |
| CHRISTINE ROSS: It is likely that you will shortly receive a communication setting out plans for existing borrowers and it would be best to wait for this. Depending on the type of loan you have, e.g. fixed or variable rate, you may or may not have a change in the level of interest you pay. Once you have learned whether your mortgage will be continued on the existing terms you can decide whether to remain or to move the loan to another provider. However, Bradford & Bingley is one of the main buy-to-let lenders and it may be difficult to find another institution willing to lend at present. You may find it helpful to speak to an independent mortgage adviser. However, I would wait for details from Bradford & Bingley before doing anything. | CHRISTINE ROSS: It is likely that you will shortly receive a communication setting out plans for existing borrowers and it would be best to wait for this. Depending on the type of loan you have, e.g. fixed or variable rate, you may or may not have a change in the level of interest you pay. Once you have learned whether your mortgage will be continued on the existing terms you can decide whether to remain or to move the loan to another provider. However, Bradford & Bingley is one of the main buy-to-let lenders and it may be difficult to find another institution willing to lend at present. You may find it helpful to speak to an independent mortgage adviser. However, I would wait for details from Bradford & Bingley before doing anything. |
| I am an investor with a one-year bond. Only just taken out. If my savings go to Santander will I be able to retrieve my monies without waiting for a year? Peter, Stonehaven, Scotland | I am an investor with a one-year bond. Only just taken out. If my savings go to Santander will I be able to retrieve my monies without waiting for a year? Peter, Stonehaven, Scotland |
| CHRISTINE ROSS: The details of the acquisition of the B&B savings arm by Santander of Spain have not yet been set out in detail. However, they would generally be expected to maintain any existing fixed rate commitments. Therefore, I do not imagine you will be able to break the deposit without penalty. As nothing is yet clear I would encourage you to await the communications that will be sent to you as an existing customer of Bradford & Bingley. You may wish to contact your local branch who might be able to assist. | CHRISTINE ROSS: The details of the acquisition of the B&B savings arm by Santander of Spain have not yet been set out in detail. However, they would generally be expected to maintain any existing fixed rate commitments. Therefore, I do not imagine you will be able to break the deposit without penalty. As nothing is yet clear I would encourage you to await the communications that will be sent to you as an existing customer of Bradford & Bingley. You may wish to contact your local branch who might be able to assist. |
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