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Bradford & Bingley buys portfolio from GMAC-RFC

UK lender Bradford & Bingley has bought a mortgage loan portfolio from General Motors-owned financial services company GMAC-RFC for around GBP599 million.

The purchase, which was funded by the company’s own resources, was made by Bradford & Bingley’s subsidiary Mortgage Express. The acquisition will increase the group’s total assets, which stood at GBP43.4 billion at the end of June, by around 1.4%.

All the lending in the portfolio is secured on UK residential property and Bradford & Bingley said that it had used its own credit scoring process to confirm that it meets the group’s credit standards.

B&B said in January that it would buy up to GBP1.4 million of mortgages from GMAC-RFC in four tranches over the year and has also indicated that the size of the deals could increase to GBP2.2 billion.