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- All of Bradford & Bingley's direct channels including its retail branches and its savings accounts have been transferred to Abbey.
- The rest of the business, including the mortgage operation and headquarters, has been taken into temporary public ownership by the Government.
- Abbey is part of the Santander Group, one of the world's most profitable and successful banks with nearly 70 million customers. It is focused on retail banking and has more branches worldwide than any other international bank.
- It's business as usual for all B&B customers. All channels - branch, telephone, internet or ATM - will all be open and operating as normal.
- There are no plans to change the Bradford & Bingley name.
- Shares have been suspended on the London Stock Exchange and can no longer be bought and sold. As required under the terms of the Banking (Special Provisions) Act 2008, the Government will lay a compensation order detailing the arrangements for compensating shareholders and any others whose rights may have been affected by the transfer. We are currently unable to provide any further guidance.
More Info Public ownership of Bradford & Bingley : Directgov - Newsroom
Questions & Answers
What has happened to Bradford & Bingley? Is my money safe?
Yes, absolutely. Bradford & Bingley's branches and savings customers are now part of Abbey and Santander. One of the largest banking groups in the world with more branches in the world than any other international bank. Abbey is part of the Santander Group, one of the world's most profitable and successful banks with nearly 70 million customers.
If you are a Bradford & Bingley mortgage customer it is business as usual and you should continue to make your repayments as usual.
Why has Bradford & Bingley got into such financial difficulties?
Bradford & Bingley has been experiencing problems in the face of the global financial crisis which meant it faced increasing difficulties raising enough money to carry on its business. That is why this deal has been struck to protect your money.
Can I get my money?
Yes. It is business as usual for our customers. You can access or pay in money in any of the usual ways – through Bradford & Bingley branches, the website, ATMs and our agents.
Are my savings guaranteed?
Bradford & Bingley deposits will covered by Abbey's banking licence and are therefore still covered by Financial Services Compensation Scheme (FSCS).This scheme provides compensation, up to £35,000, if a firm is unable to pay claims. The FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA). The service is free to consumers.
I already have savings with Abbey, which means my total will be more than £35,000 - what does this mean for my FSCS protection?
If you are an Abbey (or Cahoot) customer you will only be covered for the first £35,000.
Will I see any immediate changes to my accounts, rates, interest rates or fees?
Your existing Bradford & Bingley terms and conditions remain in place. There are no current plans to make changes to account terms and conditions.
Will my mortgage rate be hiked up now the business does not need to be competitive?
Your mortgage will continue on its current terms and conditions.
Will my cards, account numbers, contact numbers continue to work as normal?
Yes, all of these continue to work in exactly the same way.
Can I use my passbook?
Yes, you can continue to use your passbook book in exactly the same way as usual.
Will branches be open?
Yes. Bradford & Bingley branches and agent offices will be open as usual.
Can I open a new account?
Yes. You will be able to open a new Bradford & Bingley savings account. All existing accounts continue to be operated as normal.
What will happen to direct debits and standing orders?
These continue to operate in exactly the same way as usual.
What will happen to the regular savings I pay into my savings account?
These will continue to operate as normal. The payment will be made into your account in Bradford & Bingley and will be available to you in the usual way.
Can I close my account and move it?
Today's announcement should put customers' minds at ease that their cash is secure. However, as with any account, you can close or move your account at any time should you wish to.
I have a notice account with Bradford & Bingley but I would like to withdraw money today. Can I?
As the account will be operating as normal, you must give the required amount of notice before withdrawing your savings if you don’t want to lose interest.
I have a postal account but I would like to go to a Bradford & Bingley branch and take out my money today. Can I do this?
These steps have been taken to protect your money. However, if the terms and conditions of your postal account allow you to withdraw your savings from a Bradford & Bingley branch, then you may do so.
I have my insurance through Bradford & Bingley. What does this mean for me?
Your insurance cover, premiums and terms and conditions will not change.
What has happened to my mortgage with Bradford & Bingley?
Your mortgage remains in place on the terms agreed with Bradford & Bingley. You continue to owe the same amounts to Bradford & Bingley under your mortgage as you did before, and so you should continue to pay Bradford & Bingley in the usual way.
Amounts due on the mortgage under direct debit or standing orders will be paid from your usual account to Bradford & Bingley.
I have accepted a mortgage offer from Bradford & Bingley, and I am due to complete on my house purchase shortly. What should I do?
Bradford & Bingley will honour all mortgage offers it has issued. If you are one of those customers, then you do not need to worry – you will be able to complete your house purchase and you will owe Bradford & Bingley the relevant amount under your mortgage. You should put in place appropriate arrangements to make mortgage repayments to Bradford & Bingley, together with any other financial arrangements which may be relevant.
I have an outstanding mortgage offer from Bradford & Bingley. Is it still valid?
Yes. If you have already received a mortgage offer from Bradford & Bingley, it remains valid.
I have completed an application for a mortgage from Bradford & Bingley but have not yet received a response. What should I do?
Unfortunately, Bradford & Bingley is no longer offering new mortgages. If you have not received a response from Bradford & Bingley, then it is likely that no mortgage offer has been made.
If you have received a mortgage offer from Bradford & Bingley, but have not accepted that offer, then Bradford & Bingley will no longer be able to offer you a mortgage.
Are there any tax consequences from this? Will I still be sent a tax certificate from my savings account?
There are no changes to the tax implications of your account and you will be sent a certificate in the usual way.
I own shares in Bradford & Bingley. What has happened to them?
Shares have been suspended on the London Stock Exchange and can no longer be bought and sold. As required under the terms of the Banking (Special Provisions) Act 2008, the Government will lay a compensation order detailing the arrangements for compensating shareholders and any others whose rights may have been affected by the transfer.
I am a wholesale customer - what does this mean for me?
As a first step, please speak to your normal contact.
Press Release
Public Ownership and Sale of Savings Business
The Board of Bradford & Bingley plc ("Bradford & Bingley", "the Company" or "the Group") note the announcement by H M Treasury that it has today acquired all the shares in Bradford & Bingley, that all share options and other entitlements to shares issued by the Company have been extinguished and that the Group's savings business and branches have been transferred to the Banco Santander group ("Santander"), in each case, by way of a Transfer Order made under the Banking (Special Provisions) Act 2008.Santander is a group of banking and financial companies that operates through a network of offices and subsidiaries across Spain and other European and Latin American countries (including the United Kingdom). With the transfer of our savings business to Santander, savings customers can be confident that their money is secure in a well funded bank. The rest of the Group's business, including the mortgage operation, has been taken into public ownership by the Government. Mortgage customers should continue to make payments as usual. Both the savings business and mortgage operations will continue to operate as normal through these changes and branches, ATMs and on-line accounts will all be operating as usual.
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