Bradford & Bingley has bolstered its UK mortgage portfolio by snapping up a further £1.05 billion worth of mortgages from GMAC-RFC.

The firm has signed a third contract with the UK lender hard on the heals of a deal signed last month worth £470 million.

Speaking at its annual meeting today, Bradford & Bingley's group chief executive Christopher Rodrigues also revealed the former building society is set to acquire fee-based independent financial advisory (IFA) firm Holden Meehan Ltd.

Bradford & Bingley, which joined the London Stock Exchange in 2000, is building up its mortgage business by focusing on niche lending.

Mr Rodrigues said: "Today's announcement represents another step in the implementation of Bradford & Bingley's strategy.

"The agreement to purchase a further portfolio from GMAC-RFC adds scale to the selective lending business and complements our strong organic lending growth.

"The acquisition of Holden Meehan brings specialist financial planning skills to our IFA business."

Bradford & Bingley was already placed as the biggest IFA in the UK through its two brands Charcol and The MarketPlace.

Mr Rodrigues added: "Charcol is a leader in the mortgage IFA market and we will harness Holden Meehan's skills to build the leading fee-based IFA."

The firm acquired a £650 million loan portfolio from GMAC-FRC, which is part of the General Motors group, in Sept-ember 2002, followed by a further £470 million portfolio purchase in March this year.

Rod Kent, Bradford & Bingley's chairman, also revealed three changes to the firm's board. Diana Courtney, who has been a board member for more than ten years will retire tomorrow, while Trevor Lewis, deputy chairman, and Mark Smith, who has been a board member for nine years, will retire later this year.