Scarborough & Skipton Building Societies Merging

jack_spratt_2

bristolleedsfan wrote: »

I know what BB will reply with. :rotfl: Im facinated to hear what Mr Spratts belief is. :eek:

You can call me Jack if you like

wrighty1969

I took out a 10 year mortgage deal with Scarborough, and the pressure I got to increase my LTV because my original amount was tiny (to them!), alas I didn't thank god....and I think they mentioned at the last newsletter how well placed they were to meet the future needs of members...scary stuff!

I know it is hypothetical, but what would of happened with regards to my mortgage if they went bust?

RayWolfe

You would continue to have it with the administrators or, more likely, the BS that took it over.

bristolleedsfan

jack_spratt wrote: »

You do not need to be a brain surgeon to realize that the current financial markets conditions are not the same as 2007, 2006,2005,2004,2003,2002,2001,2000,1999,1998,1997 or earlier.
I do not want to seem rude but with all that has happened in the last few months we are living in unprecedented times !! things that were unthinkable just 6 months ago are not now .
Financial institutions have merge to protect themselves

Its not a big deal really !! if you do not like it move your money out

The above explanation does not equate with "these are both still strong societies", as the reason why Skipton are mopping up the Scarborough now as opposed during to previous years is because Scarborough now finds itself in an apparent weak position going forward not a strong position.

Some would say the reasons why Skipton didnt mop up Scarborough before now is due to apparent fact that Mr Carver wouldnt have given up his position/salary so easily had he not been entering "retiring" mode.

As for closing Scarborough accounts, my closure instruction was posted off on Thursday Freepost to the seaside town ending a near 13 year old relationship. Its not just about merger payments, it about reduced competition in the market place, reduced competition = lower savings rates and higher morgage rates.

With Mr Goodfellow off the scene shortly, its only a question of time IMO before Skipton BS are mopped up as well.

MrMicawber_2

Can we have increased font size and capitals as well as bold text to represent the increasing anger.

I just think it's a huge shame that Building Societies have moved away so much from their original purpose. They really were community based, and some still are, not all that long ago.

Now being largely run by salesmen and operating complicated leveraged products things have moved on a long way.

Interestingly though we are part of the problem - we chase the top rates push for windfalls and the societies have to make sufficient money to pay the staff (but not I agree massive net profits). We want the highest savings rates, the lowest mortgage rates and therefore something somewhere has to give. Bit of a problem combined with some of the 'double glazing salesmen' running the show nowadays.

wrighty1969

RayWolfe wrote: »

You would continue to have it with the administrators or, more likely, the BS that took it over.

So they would be obliged to continue the deal?

I wondered if I would be forced to find a new deal to pay the Administrators:eek:

baby_boomer

I can't move my money out of Skipton as I've got a 3 year fixed rate bond @ 7% and a 2 year fixed rate ISA @ 6.5% .

Unfortunately such market leading accounts are going to be far less likely after we're lumbered with the wreck that is Scarborough.

As I continue to argue, this particular merger doesn't strengthen the BS movement as a whole.

bristolleedsfan

baby_boomer wrote: »

And it'd be even stronger and an even better "opportunity" if the Leeds BS joined in the fun.Only you wouldn't need so many directors .

:rotfl: :eek: :rotfl:

/quote]


+ Yorkshire BS. :dance: _party_ _party_ :dance:

jack_spratt_2

baby_boomer wrote: »

I can't move my money out of Skipton as I've got a 3 year fixed rate bond @ 7% and a 2 year fixed rate ISA @ 6.5% .

Unfortunately such market leading accounts are going to be far less likely after we're lumbered with the wreck that is Scarborough.

As I continue to argue, this particular merger doesn't strengthen the BS movement as a whole.

Skipton's accounts have always been pretty much middle of the road !! the Fixed rate cash ISA was only about for a few weeks and was then pulled .

I have to agree that there will be less competition in the market place now !! but I do not think it is about the mergers that have taken place its more like the financial institutions trying to build up there profit margins and at the same time try to build up there capital reserves.

I really do understand your point of view but as I have said earlier it will be of no benefit to anyone to let any building society fail

martinman3

jack_spratt wrote: »

Some of these comments were taken from the Skipton building society site !!

You need to read between the lines.

Both societies are financially strong and have sufficient money to support their savings balances.

Yes, that is why we must merge before the losses at the Scarborough because of bad mortgage debt are finally known and there is a run on Scarborough deposits.

The enlarged Society will be well capitalised, have good liquidity, strong funding lines and high asset quality. It will be even better placed to deal with any future uncertainties in the financial marketplace.

Once we have cooked the books.

The two organisations are well matched, sharing similar business models, subsidiary interests and geography, as well as their commitment to mutuality, their members, their people and their local communities.

Hmm. They are both based in Yorkshire, isn't that enough ?

The board of Skipton would only agree to this on the basis that it will benefit its current and future members.

That is why you don't get a vote on it.:rotfl:

It is anticipated the enlarged Society will be a top five building society with approximately 860,000 members and over £16bn of assets. The enlarged Society will be well capitalised, have good liquidity, strong funding lines and high asset quality. It will be even better placed to deal with any future uncertainties in the financial marketplace.

We added up the number of members and total assets and that is the result. Never mind that many of those members will be counted twice, the properties on which the mortgages are secured have fallen in value by 15% in a year and many members will be reducing their deposits for the combined society to £50k.

There will be no 'windfall' payment for members of either society and Skipton members will see no difference in their day-to-day relationship with the Society.

We need all our money to cover the expected losses. No difference except for those members who use a branch of either Skipton or Scarborough where there is duplication.

A merger of the societies will create a much larger, stronger business in North Yorkshire which offers real advantages to both organisations and their members going forward, in view of the strengths and values we share, our close geographical location and our ethos of returning good value to our members. "We believe this merger is in the long-term best interests of our members, our people and our local community, and can only serve to enhance the building society sector."

We always wanted the Scarborough and now is our chance to get it for nothing.

p.s. Did you wonder why the Nationwide accepted £500m of funding from HMG that it said it didn't really need ?
The answer is "Cheshire" and "Derbyshire" once they had looked at their assets;)

I expect Skipton will be asking for funding they don't really need too !