Bradford & Bingley (B&B), the troubled buy-to-let mortgage bank, today said shareholders subscribed to 27.8 per cent of its £400 million rights issue, leaving almost 73 per cent with underwriters, Citigroup and UBS.

Both banks will now have to place the remaining 597 million new shares, worth £328.3 million, by Friday. They are supported by four major B&B shareholders and six clearing banks.

B&B also confirmed this morning that it has recruited Richard Pym, the former head at rival Alliance & Leicester, to be its chief executive, replacing Steven Crawshaw, who left the group in June because of ill health.

Mr Pym will earn £2.25 million over just 10 months, including a £750,000 basic salary, a cash bonus of an equal amount spread over the remainder of 2008 and the first six months of 2009, and £750,000 worth of shares.

He also receives £15 million in share options at today's price of 54.5p, after the lender's stock fell 0.25p.

Mr Crawshaw announced his departure on the same day that B&B gave a profit warning — the first stumbling block in the 55p per share rights issue that has been fraught with problems.

However, take up of the bank's shares has exceeded that of the recent fundraising by HBOS, which owns mortgage lender Halifax. Only 8.29 per cent of its shareholders signed up to the rights issue, which closed in July.

B&B, which initially announced its cash call in May, was restructured twice, first in June and again when TPG, the US private equity house, withdrew its support.

The bank, which reports first-half results on August 29, said there had been “no material change in the current trading and outlook” since its last trading statement in June.

The company hopes that today’s appointment of Mr Pym will signify the end of a tumultuous period for the country's biggest buy-to-let lender.

Rod Kent, chairman of B&B, said: "It has been a key priority for the board to find a new chief executive, and we believe that Richard Pym is ideal for the role."

Mr Pym said: "Bradford & Bingley has developed strong customer franchises in savings and lending and I am delighted to have been invited to lead the business.

"I look forward to working with the board and executive team in building a successful future."

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