Chelsea building society suffers £41 million mortgage fraud hit
It has been revealed today that the Chelsea building society has been hit by an alleged buy to let £41 million mortgage which has plunged the building society into a substantial loss for the first half of the financial year. The situation has also prompted a massive clear out the company's top management and a new management team have been installed to assess the situation and plot the way ahead.
This is not the first time we have seen an alleged buy to let mortgage fraud plunge a lender into difficulties with the Bradford & Bingley recently announcing a large increase in debt provisions with regards to its buy to let division. The £26 million loss for the half-year has put the Chelsea building society very much on the back foot and there is the possibility of a sale, merger or fundraising program. The new management will first assess the situation and then make a decision about the future although at this moment in time it looks very precarious.
The buy to let market is a market which seems to have slipped under the radar of the various UK regulators and many chickens are now coming home to roost.
Share this..
Related stories
Government looks to help Equitable Life sufferers
Equitable Life, the former highflying financial giant of the UK, is back in the news today with confirmation that the UK government will this week announce a £1.5 billion compensation package which is significantly better than the initial £400 million package recommended by a review of the near collapse. While this does not come close to the estimated £5 billion losses as a result of the collap...
Read MoreThe UK economic collapse : lesson one
There are many factors which have affected the UK economy over the last 18 months but one of the major impacts has come from the regulatory operations within the UK. For many years a number of analysts have been suggesting that the UK system was to "lax" as the so-called "self-regulatory" system allows UK financial businesses to have far too much influence on the ongoing regulatory framework.
Read More
Will Mervyn King win through at the end of the day?
Last week's revelation that Mervyn King, the Gov of the Bank of England, had demanded a £75 billion extension to the quantitative easing program as opposed to the figure of £50 billion which was agreed by the MPC has got many analysts and experts wondering what may happen next. Mervyn King has only been in the minority with regards to MPC votes on three occasions since 2003 and has a reputation...
Read MoreHBOS Announces 400 Job Losses
In a move to shore up what in the eyes of many has been an ailing business for a few months now, HBOS has confirmed that an additional 400 employees around the group will lose their jobs. This is on top of the 650 job losses announced earlier this summer as the group looks to reorganise and downscale for the future.
While many reasons for the job losses are specific to HBOS there i...
LIBOR rate falls to 4.49%
The vital LIBOR rate has fallen 1.1 percentage points to 4.49% since the Bank of England reduced interest rates which has breathed new life into the money markets. Even though the fall of 1.1% is less than the 1.5% reduction in interest rates this is very much welcomed by the financial community which has seen borrowing costs increase massively over the last 12 months. However, some experts are su...
Read More