RBS assures investors over buy-to-let fears

ROYAL Bank of Scotland today moved to reassure investors buy-to-let mortgages account for only one per cent of its UK loan portfolio.

It made the comments following concerns it may face similar difficulties to buy-to-let specialist Bradford & Bingley.

The Edinburgh-based bank also said today that it still expects to achieve trading targets announced in April.

RBS is reportedly seeking talks with investment firm Schroders and other investors that have been plotting to find a replacement for chairman Sir Tom McKillop.

And the company has also agreed to sell its 50 per cent stake in Tesco Personal Finance in a move that will raise £1 billion in fresh capital.

Tesco would then seek a banking licence to run the operation itself.

But it has had difficulty disposing of its insurance arm, which includes Direct Line.