Barclays cuts back risky lending after £228m hit from UK mortgage firm MFS
Barclays is reducing its lending to risky borrowers following a £228 million loss from the collapse of the mortgage lender Market Financial Solutions (MFS). The bank's chief executive highlighted the increasing incidence of fraud and the need for stronger financial controls among borrowers. Despite these challenges, Barclays reported a rise in pre-tax profit and investment banking income in the first quarter of 2026.
- ▪Barclays took a £228 million hit from the collapse of Market Financial Solutions due to alleged fraud.
- ▪The bank's total credit impairment charges rose to £823 million in the first quarter of 2026.
- ▪Barclays set aside an additional £105 million for compensating customers in the motor finance scandal.
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Barclays’ quarterly income from investment banking topped £4bn for the first time. Photograph: Sergio Pérez/ReutersView image in fullscreenBarclays’ quarterly income from investment banking topped £4bn for the first time. Photograph: Sergio Pérez/ReutersBarclaysBarclays cuts back risky lending after £228m hit from UK mortgage firm MFSBank’s chief executive points to alleged fraud as it sets aside a further £105m for motor finance compensation Nils Pratley: Another shadow banking hit – but otherwise, Barclays looks fine Julia KolleweTue 28 Apr 2026 07.14 EDTFirst published on Tue 28 Apr 2026 05.27 EDTSharePrefer the Guardian on GoogleBarclays is pulling back from lending to risky borrowers, as its chief executive warned of increasing numbers of fraud cases and the bank took a £228m hit…
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