Skip to content
Subscriber Only

Warning as Mortgage Bank's Profits Dive

Alliance and Leicester announces a 29% drop in operating profits. Defaults and repossessions rise due to credit crunch

Mortgage bank Alliance & Leicester warned today of a "challenging" year ahead, as it reported a 29 per cent drop in 2007 operating profits following a £185 million hit from the credit crunch.

The group said funding would remain a priority and pledged it would keep a tight control on lending -- a day after it emerged that A&L was one of a number of lenders to pull the plug on controversial 125-per-cent mortgages.