New B&B chief looks for savings

Specialist mortgage provider Bradford & Bingley yesterday signalled it will slash costs although it said the housing boom is continuing to grow ahead of its expectations.

At the annual meeting of the Yorkshire-based firm, new chief executive Steven Crawshaw said that he would address the "complexity and cost base" of the business.

Analysts said that its estate agency, mortgage broking and financial advising business had high costs and could be a target for cost-cutting or selling off.

Mr Crawshaw said he would not give more information, as he has been in the job for only 26 days and it was too early to comment.

Former chief executive Christopher Rodrigues left to run Visa International last month. He was the architect of Bradford & Bingley's strategy to concentrate on the housing market and specialise in buy-to-let and self-certification mortgages.

Mr Crawshaw said the housing and mortgage markets had been more buoyant than expected in the first part of the year. "We believe this strong start is likely to temper somewhat during the remainder of the year," he said.

HBOS yesterday also held its annual meeting and chairman Dennis Stevenson echoed Bradford & Bingley's comments on the property market. "The housing market is robust with house price growth likely to end the year much stronger than originally forecast," said a statement from HBOS.

It said trading was in line with expectations. The share price rose 9p to close at 757.5p.

One analyst, who declined to be named, said they were surprised at the rise.

"I'm surprised the stock is so strong," said the analyst. "I read the statement as slightly muted in its expectations, as I would expect things to be a bit stronger at this point."

HBOS said it intended to expand in Ireland, where it plans to challenge Allied Irish Banks and the Bank of Ireland.

HBOS will launch consumer products and services in the country under its Bank of Scotland brand.