Contents of the Financial Statements

for the Period Ended 31 December 2025

Directors' report period ended 31 December 2025

The directors present their report with the financial statements of the company for the period ended 31 December 2025

Directors

The directors shown below have held office during the whole of the period from
1 January 2025 to 31 December 2025

The director shown below has held office during the period of
1 January 2025 to 28 February 2025

The director shown below has held office during the period of
28 February 2025 to 31 December 2025

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
17 February 2026

And signed on behalf of the board by:
Name: Alpa Bhakta
Status: Director

Profit And Loss Account

for the Period Ended 31 December 2025

Balance sheet

As at 31 December 2025

The notes form part of these financial statements

Balance sheet statements

For the year ending 31 December 2025 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 31 December 2025

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

  Turnover policy

  Income recognition Interest income and interest expense are recognised in the Income Statement using the effective interest rate method. Fee income and other direct costs relating to loan origination or commitments are recognised in the Income Statement using the effective interest rate method. Other fee income including administration fees is recognised in the Income Statement in the period to which they relate.

  Tangible fixed assets depreciation policy

  Tangible fixed assets and depreciation Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, and costs directly attributable to bringing the asset to its working condition for its intended use. (i) Depreciation and residual values Depreciation is calculated, using the straight-line method, to allocate the cost to their residual values over their estimated useful lives, as follows: Short leasehold property – over the period of the lease Furniture and other equipment – 4 to 5 years Computer equipment – 3 to 5 years The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. (ii) Derecognition Tangible fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Income Statement and included in ‘Other operating (losses)/gains’.

  Other accounting policies

  Foreign currency (i) Functional and presentation currency The financial statements are presented in pound sterling (£) which is BML’s functional and presentation currency, and rounded to the nearest £’000. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the date of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses arising on monetary assets and liabilities are recognised in the Income statement. Pension costs BML operates a Group Personal Pension (“GPP”), comprising a Defined Contribution section, and a Legacy Pension Scheme (the “Scheme”) comprising a Defined Benefit and a Defined Contribution section up until 28 September 2020 when the Defined Contribution section was wound up. The DB section closed to new members with effect from 1 April 2002 and subsequently closed to further accrual of new benefits with effect from 1 October 2012. A full actuarial valuation of the Scheme Defined Benefit section is undertaken every three years and updated to 31 December each year by a qualified actuary on behalf of BML. For the purposes of these annual updates, assets are included at market value and liabilities are measured on an actuarial basis using the projected unit method; these liabilities are discounted at the current rate of return on a Corporate AA Bond Index of equivalent term and currency of the related liabilities at the relevant date. Any post-retirement benefit deficit is included in BML’s Statement of Financial Position, gross of the related amount of deferred tax. The current service cost and any past service cost is included in the Income Statement within operating expenses. The net interest element is calculated as the difference between interest income on plan assets and interest costs on the defined benefit obligation. The net interest is determined by multiplying the net defined benefit liability by the discount rate at the start of the period taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in the Income Statement as other finance revenue or cost, except where there is a defined benefit surplus that is not recoverable. Any movements in a non-recoverable net pension surplus are not recognised. Re-measurements, comprising actuarial gains and losses, and the return on the net defined benefit liability (excluding amounts included in net interest) are recognised immediately in other comprehensive income in the period in which they occur. Re-measurements are not reclassified in the Income Statement in subsequent periods. Contributions to the GPP are charged to the Income Statement in the period in which they fall due. BML recognises pension surpluses to the extent that these surpluses can be realised in the form of future repayments or reductions in future contributions to the scheme. Taxation Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively. Current or deferred taxation assets and liabilities are not discounted. (i) Current tax Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. (ii) Deferred tax Deferred tax arises from timing differences that are differences between taxable profits and accounting profits as stated in the Financial Statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the Financial Statements. Deferred tax is recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. Deferred tax is not provided on timing differences arising from the revaluation of fixed assets where there is not a commitment to sell the asset. Leased assets At inception BML assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement. Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases. Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. (i) Operating leased assets Rentals payable and receivable under operating leases are accounted for through the Income Statement in equal amounts over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case BML recognises an annual rental expense equal to amounts owed to the lessor. (ii) Lease incentives The aggregate benefit of lease incentives received to enter into an operating lease is recognised as a reduction to the expense recognised over the lease term on a straight-line basis. Onerous lease provisions Onerous lease provisions are made for any contracts in which the unavoidable costs of meeting the obligations under it exceed the economic benefits expected to be received from the continued use of the underlying asset. Impairment of non-financial assets At each reporting date non-financial assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Income Statement. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Income Statement. (l) Provisions and contingencies (i) Provisions Provisions are recognised when BML has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost. (ii) Contingencies Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within BML’s control. Contingent liabilities are disclosed in the Financial Statements unless the probability of an outflow of resources is remote. Contingent assets are not recognised. Contingent assets are disclosed in the Financial Statements when an inflow of economic benefits is probable. Financial instruments BML has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. (i) Basic financial assets Basic financial assets, including cash and balances and debt securities, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest rate (EIR) method. (ii) Impairment of financial assets BML regularly reviews all classes of financial assets to identify whether there are any indications of impairment. Assets held at amortised cost are considered to be impaired where the recoverable amount of the asset i.e. the discounted expected future cash flows from the asset, using the original EIR, is less than the carrying value of the asset. Evidence of impairment includes non-payment of interest or other evidence that the borrower is experiencing financial difficulties. All impairment losses are recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. (iii) Basic financial liabilities Basic financial liabilities, including liabilities to customers and subordinated liabilities, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future payments discounted at a market rate of interest. Such liabilities are subsequently carried at amortised cost using the effective interest rate method. (iv) Derecognition of financial assets Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. BML has transferred the risks and economic benefits associated with its loan portfolio to BBCIL under sub-participation arrangements and so the loan portfolio is not recognised in the Statement of Financial Position. (n) Segmental reporting There are no geographical segments beyond the United Kingdom. The Company’s primary activity has been the provision of residential mortgages to customers in the UK and therefore there is only one segment.

Notes to the Financial Statements

for the Period Ended 31 December 2025

• 2. Employees

  	2025	2024
  Average number of employees during the period	24	26