Sept. 21 (Bloomberg) -- The U.K.'s Financial Services Authority contacted three banks about buying U.K. mortgage lender Bradford & Bingley Plc, the Sunday Telegraph reported, citing unidentified people close to the companies.

Prospective buyers considered by the FSA include Spain's Banco Santander SA, Dutch financial services group ING Groep NV and National Australia Bank Ltd., the newspaper said. Unidentified people close to Bradford & Bingley said the lender is not in takeover talks, according to the Telegraph.

Neither the regulator nor Bradford & Bingley would comment on the news, the Telegraph said.

FSA spokeswoman Kirsty Clay declined to comment when contacted by Bloomberg News. Bradford & Bingley didn't respond to a message seeking comment. ING spokesman Nanne Bos declined to comment. A message left for Santander spokesman Peter Greiff in Madrid after regular business hours wasn't immediately returned.

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.netJames Lumley in London at jlumley1@bloomberg.net.

Last Updated: September 21, 2008 09:06 EDT