photo credit: Iain Farrell
The nationalisation of a leading bank and investment property loans specialist is only a “ripple” in a bigger pool of trouble, experts have said.
Earlier this week Bradford and Bingley‘s savings and branch network was sold to Spanish giants Santander, with its loans and mortgages passing into government hands.
The bank specialised in buy to let mortgages, prompting fears getting hold of borrowing to buy investment property could become harder and more expensive.
Property specialists Chesterton noted there were “no images of panicked customers queuing in the streets” following the buy-out of the bank.
The move came seven months after another bank, Northern Rock, also ended up in government hands after falling into trouble.
Speaking before the initial failure of a $700 billion US rescue package, Chesteron area director Giles Cooks said: ”
Recent experience has taught the government what they can do in these situations and they are able to swoop in and manage expectations.
“In summary, there is a general perception that help is at hand which should be reflected in a stabilising property market.”
He said the effect of the nationalisation on the wider property market “is just a ripple in an ever-widening pool of turmoil”.
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