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21/08/2009
Building Society Loses In Buy-To-Let Fraud
Chelsea Building Society has revealed that it has lost £41 million due to buy-to-let mortgage fraud.
The building society, the fifth biggest in Britain, has blamed the fraud for it sliding into the red during the first half of the year, reporting overall losses of £26 million, compared with a £23 million profit during the same period last year.
It has been revealed that the Chelsea discovered that the fraudulent loans, which were mainly among buy-to-let loans, had been made between 2006 and 2008. They said that the frauds were a result of the "artificial inflation of property values by third-party professionals involved in the transactions".
The Chelsea ceased any buy-to-let lending last year.
Commenting on the latest figures, Stuart Bernau, Chelsea's Chairman and Interim Chief Executive, commented: "The Society has been through a difficult period and reporting a loss in the first half of the year is disappointing.
"However, the underlying performance is strong even though we have had to make provision for impairment and fraud losses.
"In a competitive market, we have continued to attract strong retail inflows with our savings accounts increasing by over 38,000 in the first six months of the year, a testament to our strong and trusted brand.
"Our mortgage lending is now fully covered by our retail deposits and this has significantly reduced our reliance on wholesale markets," he said.
"This is a good platform from which to build and we are concentrating on the society's strengths by returning to its traditional values.
"We will continue to focus on providing excellent value and service to our members and Chelsea remains well placed to benefit from any recovery in the economy and housing market over the coming months."
(KMcA/BMcC)
The building society, the fifth biggest in Britain, has blamed the fraud for it sliding into the red during the first half of the year, reporting overall losses of £26 million, compared with a £23 million profit during the same period last year.
It has been revealed that the Chelsea discovered that the fraudulent loans, which were mainly among buy-to-let loans, had been made between 2006 and 2008. They said that the frauds were a result of the "artificial inflation of property values by third-party professionals involved in the transactions".
The Chelsea ceased any buy-to-let lending last year.
Commenting on the latest figures, Stuart Bernau, Chelsea's Chairman and Interim Chief Executive, commented: "The Society has been through a difficult period and reporting a loss in the first half of the year is disappointing.
"However, the underlying performance is strong even though we have had to make provision for impairment and fraud losses.
"In a competitive market, we have continued to attract strong retail inflows with our savings accounts increasing by over 38,000 in the first six months of the year, a testament to our strong and trusted brand.
"Our mortgage lending is now fully covered by our retail deposits and this has significantly reduced our reliance on wholesale markets," he said.
"This is a good platform from which to build and we are concentrating on the society's strengths by returning to its traditional values.
"We will continue to focus on providing excellent value and service to our members and Chelsea remains well placed to benefit from any recovery in the economy and housing market over the coming months."
(KMcA/BMcC)
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Building Society's Mortgage 'Surge'
EBS Building Society has expanded its share of the retail mortgage business The company's stake has grown by 5% to 18.5%. It also boosted its slice of the first-time buyer market during the first half of 2009 by 5%. The figures have been released by the Irish Banking Federation.
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Rising fraud spirits away millions from UK businesses
The total number of fraud cases in the UK rose by 14% in 2004, according to latest figures from KPMG’s 'Fraud Barometer', but the overall value of frauds being committed fell by 12%.
Rising fraud spirits away millions from UK businesses
The total number of fraud cases in the UK rose by 14% in 2004, according to latest figures from KPMG’s 'Fraud Barometer', but the overall value of frauds being committed fell by 12%.
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Northern Ireland WeatherToday:A very mild, but mostly cloudy day, although with some bright or sunny spells. It will be mostly dry in the morning, but a little patchy light rain or drizzle at times in the afternoon. Maximum temperature 14 °C.Tonight:A band of heavier rain will move east during the evening before clearing eastwards after midnight. then mostly dry through the early hours, but a little rain towards dawn. Minimum temperature 8 °C.
