Now we the taxpayers rescue another failed business – Bradford and Bingley – and as a country are now the proud sponsors of Bradford City FC (as well as Newcastle Utd!).
Bradford and Bingley (aka The Government) also sponsor the Bradford Bulls Foundation, Yorkshire County Cricket Club Indoor Cricket Centre and Bradford and Bingley RFC incidentally.
Bradford and Bingley were one of the major culprits in the creation of the Credit Crunch with their ridiculous overloading of buy to let mortgages and self certified mortgages accounting for over 80% of their business, and directly accounting for the outrageous growth in house prices. It was bound to fail and City Analysts were predicting months ago that their shares were worth nothing -much to the annoyance of the banking sector!
It Stinks – these bad businessmen are allowed to create a house of cards in the UK housing market and walk away from it leaving us the taxpayers to pick up the pieces – whatever happened to the free market? And where were the FSA in all this?
On an Insurance front their book of business is relatively small in the larger scheme of things with a lot of home insurance particularly landlord insurance cover and mortgage protection insurance policies sold on the back mortgages.
Our advice to anyone holding these policies is to switch today. This applies particularly to mortgage payment protection which is a monthly policy and is easy to cancel and set up elsewhere. With lenders charging more than five times the rates for this type of insurance than the independent sector – you would be wise to switch mortgage insurance today!