The Treasury has raised the rate of interest on loans used to prop up Bradford & Bingley (B&B) during the banking crisis, in a move that will accelerate payments to the Exchequer.
The increase in the interest payment – from 1.5 percentage points over base rates to five – was revealed as the taxpayer-backed company that owns B&B's mortgages and Northern Rock Asset Management (NRAM) – the "bad" part of the Newcastle-based lender – said it had paid back another £1bn to the government. The two banks still owe £47.7bn.
UK Asset Resolution (UKAR) also reported an increase in profits for NRAM in the six months to June, to £344m from £182m, and a rise at B&B to £152m from £83.6m.
More from the source: Bradford & Bingley hit by interest rise from Treasury | Business | guardian.co.uk
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Interesting they got used to low BoE rates and just increased premium to 5%, I wonder if that means that the rates will stay low...
The increase in the interest payment – from 1.5 percentage points over base rates to five – was revealed as the taxpayer-backed company that owns B&B's mortgages and Northern Rock Asset Management (NRAM) – the "bad" part of the Newcastle-based lender – said it had paid back another £1bn to the government. The two banks still owe £47.7bn.
UK Asset Resolution (UKAR) also reported an increase in profits for NRAM in the six months to June, to £344m from £182m, and a rise at B&B to £152m from £83.6m.
More from the source: Bradford & Bingley hit by interest rise from Treasury | Business | guardian.co.uk
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Interesting they got used to low BoE rates and just increased premium to 5%, I wonder if that means that the rates will stay low...
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