Investment Property News - Bueno Investments Limited

Bradford & Bingley has said that demand for buy-to-let mortgages remained robust, but warned that arrears levels were continuing to rise.

Ahead of its annual meeting, the mortgage specialist said it continued to fund its operations "successfully", helped by a £1.9 billion increase in savings deposits so far this year.

Last week Bradford & Bingley was forced to reject speculation that it needed to raise funds through a right issue. It has repeated that it was funded into next year and that its diverse funding sources served it well.

Lending volumes for the first quarter of 2008 were lower than the same period last year, which Bradford & Bingley said came as it repriced mortgage products to cope with demand and in order to widen new business margins.

It said: "Supply has become more constrained with the withdrawal of several competitors from the UK mortgage market. However, demand for buy-to-let remains robust, with landlords reporting continuing tenant demand and rising rents." Bradford & Bingley said arrears levels continued to rise in the first quarter, reflecting "payment strain".

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