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Bradford&Bingley PLC (BB.)


Tuesday 23 September, 2008

Bradford&Bingley PLC

New Terms for Mortgage Agreem

RNS Number : 1345E
Bradford & Bingley PLC
23 September 2008

Bradford & Bingley plc


Bradford & Bingley and GMAC-RFC announce new terms for mortgage agreement

Bradford & Bingley (the Company) and GMAC-RFC confirm today that they have successfully renegotiated the terms of their mortgage forward sale agreement. 

Under the original terms of the agreement, signed in December 2006, the Company agreed to purchase a minimum of £350m of UK mortgage assets per quarter, with £1.75bn remaining to be purchased before the end of 2009. 

Both businesses have agreed to revise the terms of this agreement to their mutual benefit whereby £500m of loans will be acquired in Q4 2008 and between £225m and £250m in Q1 2009 after which the agreement will cease. GMAC-RFC will receive in lieu, the equivalent of the premium that would have been paid should the agreement have run the full term. 



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