Nov. 6 (Bloomberg) -- Bradford & Bingley Plc has seen an increase in the number of mortgage borrowers falling behind on payments, raising concern the lender may face potential losses, the Financial Times reported, citing Moody's Investors Service.

Delinquencies of more than three months rose by 2.3 percent in the third quarter, the newspaper reported. That is up from 1.45 percent in the previous three months and 0.8 percent for the third quarter in 2007, the FT said.

Bradford & Bingley was nationalized by the U.K. government following the collapse of Lehman Brothers Holdings Inc., leaving the state with the bank's 42 billion-pound ($67 billion) mortgage loan book, the newspaper said.

To contact the reporter on this story: Andrew MacAskill in London at amacaskill@bloomberg.net

Last Updated: November 5, 2008 20:22 EST