Friday, 21 August 2009

Building society announces massive fraud

Yes, it is buy to let again.....

The Chelsea building society has revealed it has lost £41m ($67m) as a result of mortgage frauds by some of its buy-to-let borrowers. The frauds are the main reason for the society staying in the red, with overall losses of £26m in the first half of the year.

Last year, the Chelsea lost £39m, the largest annual loss yet recorded by any building society. Its finance director has now joined its chief executive in agreeing to resign.

"The society has been through a difficult period and reporting a loss in the first half of the year is disappointing," said Stuart Bernau, the Chelsea's chairman and interim chief executive.


manfromthefuture said...

Is is really fraud or just trying to deflect losses. if fraud, why just the Chelsea?

Markbaldy said...

It didn't matter when house prices were being hyped up - the banks and building societies were bending over backwards to get the business in the belief that they couldn't lose... all regulated by the FSA of course... that Gordon set up to make sure they DID keep lending and keep his "mirage" economy steaming ahead.
Anyone with an ounce of common sense saw this one coming years ago - it just could not continue.

ict558 said...

I saved with the Chelsea from the age of 15 for a deposit for my first home.

When, at 27, I approached them for a mortgage, able to deposit 20% on a property priced within 2 1/2 times my salary, they refused me!

Did I curse them then! Glad to see it worked (eventually).