5% of B&B borrowers in default

State-owned lender Bradford & Bingley has confirmed that one in 20 of its mortgages are in default, and the rate is set to go higher. Chairman Richard Pym said the proportion of borrowers more than three months behind on their repayments had worsened since March, from a rate of 4.6 per cent to more than 5 per cent now, and estimated that loan losses this year would be between £600 million and £700 million, up from £500 million last year.