Nationwide rates to increase by +.30% across the board.

ad9898_3

ad44downey wrote: »

This is only the appetiser. What's it going to be like when the BoE interest rate goes through the roof? There'll be blood on the streets :eek:

You know ad, I like your style, you are the antithesis of the media ramper.:D

chucky

ad44downey wrote: »

This is only the appetiser. What's it going to be like when the BoE interest rate goes through the roof? There'll be blood on the streets :eek:

someone please explain to her that the BOE base rate doesn't have much to do with mortgage rates unless you have a Libor or BOE tracker...

Graham_Devon

chucky wrote: »

someone please explain to her that the BOE base rate doesn't have much to do with mortgage rates unless you have a Libor or BOE tracker...

Why, can't you?!

chucky

Graham_Devon wrote: »

Why, can't you?!

because it will probably trigger a next sound bite comparing BTL to stealing from your granny

Thrugelmir

An extract from the 2008 Nationwide accounts. Despite being profitable they are expecting 2009 to be a difficult year reading between the lines.

“History will record 2008 as a year of fundamental change to banks and financial institutions across the world. Nationwide has remained strong in the midst of all this turbulence and has been the only major UK banking institution not to raise capital or seek access to Government sponsored capital enhancing schemes. This reflects a combination of our naturally high capital and prudent lending practices which are the hallmark features of a strong building society.
“Profitability has been adversely affected by the low interest rate environment and increased provisions as a result of the current recession. Our reported profit is 53% lower than it would otherwise have been because there is an exceptional charge of £241 million relating to the levies payable to the FSCS.
“We regard the fact that the FSCS charge is not linked to the level of risk posed to the financial system by individual institutions, but instead is allocated by share of the retail savings market, as illogical and unfair, producing a disproportionate outcome for the low risk retail funded institutions, particularly building societies. This view is shared by 173 cross party MPs. We have also lobbied for an increase in the FSCS limit from £50,000 to at least £100,000 which would reassure savers with independent institutions that they have similar protection as those with Government owned, nationalised and part-nationalised banks.
“During the year we played our part in promoting financial stability by merging with the Derbyshire and Cheshire building societies in December 2008 and by acquiring selected assets and liabilities of Dunfermline Building Society in March 2009. In addition, the Group also expanded its retail savings franchise by opening a branch in Ireland in March 2009.
“The size of the mortgage and savings market has contracted significantly in the year as a result of the extreme economic conditions. In addition, aggressive deposit taking by state owned institutions such as NS&I and Northern Rock effectively took in excess of 70% of the savings market in the second half of 2008. Against this background we maintained our competitive position with healthy market shares of over 8% for mortgages and 10% for savings deposit growth.
“Market conditions will remain challenging throughout 2009 and beyond. In particular, the low interest rate environment will continue to depress margin and higher levels of unemployment and business failures will inevitably lead to increased loan loss provisions. However, we remain confident that Nationwide’s high quality balance sheet and robust capital ratios will continue to underpin our financial strength and place us in a strong position to trade through these conditions and remain a real and attractive alternative to the banks.”

Treadmill

chucky wrote: »

someone please explain to her that the BOE base rate doesn't have much to do with mortgage rates unless you have a Libor or BOE tracker...

True if BoE rates are high you will probably be able to pick up a fix for less than the base rate, teaser rates being well above base rate has only really occured since the Base rate was slashed

macaque_2

ad9898 wrote: »

BoE starting to become irrelevant, market sets the rates.

http://www.ftadviser.com/FTAdviser/Mortgages/Products/Fixed/News/article/20090609/6ec0d5d0-54e1-11de-b9ea-0015171400aa/Nationwide-overhauls-mortgage-range.jsp

If posts were put to music, this one would have the 'Jaws' theme.

Degenerate

ad9898 wrote: »

BoE starting to become irrelevant, market sets the rates.

http://www.ftadviser.com/FTAdviser/Mortgages/Products/Fixed/News/article/20090609/6ec0d5d0-54e1-11de-b9ea-0015171400aa/Nationwide-overhauls-mortgage-range.jsp

Let's have a closer look at that:

Nationwide Building Society is set to increase its further advance rates by 0.30 per cent across all its loan-to-value (LTV) tiers from tomorrow (10 June).
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Furthermore, the building society will also increase the rate on its three-year fixed remortgage to 4.39 per cent for a loan of up to 60 per cent LTV.
According to Nationwide, all other rates and lending criteria will remain unchanged.

You might want to edit your "across the board" subject line, given that it's an outright lie.

As for Nationwide, the SVR they offer existing customers is the lowest in the industry due to a prior commitment not to raise it higher than BOE base rate + 2%. They are putting up rates for new customers and other products to recoup their losses from the low SVR.

System

Hah, I hadn't actually read the article, well spotted.

ad, for someone who constantly accuses anyone and anything of spin this is pretty pathetic.

chucky

Treadmill wrote: »

True if BoE rates are high you will probably be able to pick up a fix for less than the base rate, teaser rates being well above base rate has only really occured since the Base rate was slashed

exactly, traditionally you could always get a mortgage rate cheaper than base rate.

some people want their cake and want to eat it if they're expecting to get a mortgage rate cheaper than the current base rate :rolleyes: