Bad and doubtful mortgages confronted the Co-op Bank’s new chief - TopicsExpress



          

Bad and doubtful mortgages confronted the Co-op Bank’s new chief executive Niall Booker when he took the reins yesterday. Impaired loans on a book of former Britannia mortgages known as ‘Optimum’ are running at 17 per cent way above the industry average with £1.2billion of home loans at risk of going bad. Across the Co-op Bank’s whole mortgage book 6 per cent of lending is classed as impaired. A further £1.1billion of loans are in ‘forbearance’, meaning borrowers in supposedly temporary straits have agreed a deal such as a payment holiday. These are not classed as impaired, but many of the borrowers concerned could be at risk if interest rates rise, or if their temporary financial problems last longer than anticipated.
Posted on: Tue, 11 Jun 2013 19:11:20 +0000

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