Nationwide decides not to pass on any more rate cuts

olly300

maxmerlin wrote: »

Ok, so savers out number morgage holders 7 - 1 but on average your morgage is going to be around 50 - 100 k........ how many have got this amount of savings?? I would prefer them to cut the rates again so I could lower the term of my mortgage.

Mortgages at Nationwide are funded by their savers deposits.

Building societies operate differently to banks.

Nationwide, one of the few remaining building societies left, did not going into the lending that other banks did by playing on the money markets.

If you read the papers and others posts instead of repeating your rant you would have noticed that all the former building societies that converted to banks have either been:
1. Nationalised i.e. Northern Rock, Bradford and Bingley Mortgages
2. Taken over by a larger rival i.e. Alliance and Leicester, Bradford and Bingley Savers

maxmerlin wrote: »

These banks expect the goverment to help them out when they are in trouble, but they are not repaying the favor to the goverment!!

Do you mean HBOS, RBS group and NR who got money from the UK government?

maxmerlin wrote: »

Come on Nationwide start playing the game!

Nationwide have already been generous to you.

Their key facts terms and conditions clearly stated there was a collar on your mortgage.

They ignored this for while and now realise if they continue to ignore it then savers which include children,young people and OAPs without mortgages will take their money elsewhere.

ad9898_3

maxmerlin wrote: »

Ok, so savers out number morgage holders 7 - 1 but on average your morgage is going to be around 50 - 100 k........ how many have got this amount of savings?? I would prefer them to cut the rates again so I could lower the term of my mortgage. These banks expect the goverment to help them out when they are in trouble, but they are not repaying the favor to the goverment!! Come on Nationwide start playing the game!

The problem is, the banks need savers money at the moment in order to lend, money from the markets has dried up and securitising and selling debt is also a no no at this time.

As a saver with just over 40k, if banks keep dropping rates I will buy a safe and take all my money out, thats 400k (fractional reserve) that the banks will not be able to lend out, using your figures thats 4-8 mortgages that will be unable to be given, and thats just one saver, me.

I understand that some folk on here don't get fractional reserve, however Brown and his cronies should know better.

Browntoa

feisty1 wrote: »

Nationwide did not receive money from the Government

and they have been milked to help bail out Northern rock, although they are managed well and played no real part in the current problems facing the BANKS

Mozette

maxmerlin wrote: »

Ok, so savers out number morgage holders 7 - 1 but on average your morgage is going to be around 50 - 100 k........ how many have got this amount of savings?? I would prefer them to cut the rates again so I could lower the term of my mortgage. These banks expect the goverment to help them out when they are in trouble, but they are not repaying the favor to the goverment!! Come on Nationwide start playing the game!

I won't repeat what has been said by others above re Nationwide, but I agree.

My tracker is coming to an end in 3 months, so I've been looking for a better deal than going onto Nationwide's base mortgage rate; know what? I can't find one. Not any of the trackers, discounts or whatever will work out cheaper.
Nationwide have more than 'played the game'; with me.

I said it at the time, and I'll repeat it now, no good has come from converting Building Societies to banks; all that short term greed of 'I want my £500 worth of shares' is now - in my opinion - coming home to roost. I always have, and always intend to, stick with building societies over banks. I'm not saying they're perfect, but they're a whole lot better.

I'm an atheist, but if there is one truth in the Bible it is this: "The love of money is the root of all evil."

Greed never was, and never will be, good.

Mozette

ad9898 I've just read your signature, and laughed so much I spat my tea over my screen!
Class!
And now it's time to hand over to our tame Prime Minister,
Some say he will try and prop up the housing market at any cost,
And that he thinks all this started in America,
All we know is, he's a c0ck.

leveller2911

maxmerlin wrote: »

Ok, so savers out number morgage holders 7 - 1 but on average your morgage is going to be around 50 - 100 k........ how many have got this amount of savings?? I would prefer them to cut the rates again so I could lower the term of my mortgage. These banks expect the goverment to help them out when they are in trouble, but they are not repaying the favor to the goverment!! Come on Nationwide start playing the game!

So choose 1 option from the following:

Option 1 : Mortgage rate dropped to give you £50-00 PM reduction and in doing so depriving Old Mrs Miggins (78yrs old,small pension and savings)down the road of some interest.?
OR

Option 2: Your mortgage is unchanged and she gets her interest?


TOUGH CHOICE EH?:rolleyes: