Barclays cuts back risky lending after £228m hit from UK mortgage firm MFS

Bank’s chief executive points to rising fraud as it sets aside a further £105m for motor finance compensation

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Barclays 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 from the failure of a mortgage lender.

The mortgage lender Market Financial Solutions (MFS) collapsed in February amid allegations of fraud and the UK’s financial regulator has since launched an investigation into the scandal.