Royal Bank of Scotland (RBS) has today rushed to confirm its buy-to-let mortgages represent only 1 per cent of its UK loan portfolio, in a move to distance itself from the current crisis at rival lender Bradford and Bingley .
B&B, Britain's largest buy-to-let lender, warned that its profits will fall short of expectations and said it is to redraw its fundraising.
"RBS confirms that the trading guidance provided in the interim management statement of 22 April 2008 remains appropriate for the group and for the divisions," the bank said in a statement issued earlier today.
The group added that the clarity on buy to let mortgage was "in response to enquiries received".
According to analysts, the move by RBS highlights how nervous it is about its £12bn rights issue - the largest in British corporate history.
The bank’s profits warning has caused shares across the UK banking sector to tumble in early trading.
As a result, RBS shares have fallen by 8½p since Friday night to 220p - just 20p above the 200p offer price, raising fresh fears that punters will not take up their rights and leave a large part of stock with the underwriters.
RBS Ease Concerns Over Buy To Let Loans
RBS Ease Concerns Over Buy To Let Loans
Mon, 02 Jun 2008
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