Skipton BS faces Legal Challenge over raising rates...

HAMISH_MCTAVISH

DaddyBear wrote: »

It does, however, I don't think the correction due to affordability will be that significant.

Its the first-time buyers that are key and people shouldn't underestimate the Bank of Mum & Dad.
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I would mostly agree with those statements.

chucky

Charterhouse wrote: »

You don't think that the markets are slightly more selective about whether they lend to someone with arrears of 0.5% or someone with arrears of 5%? I can assure you they are...

a small (big) detail that you miss which is the point i've been making all along

they didn't have those kind of arrears in 2007 or 2008 when they were actively borrowing off the money markets. once the money markets liquidity stopped in mid to late 2008 they had issues

DaddyBear

HAMISH_MCTAVISH wrote: »

I would mostly agree with those statements.

Its worrying though, in a way. The reason that the Bank of Mum and Dad has been able to be so generous is the massive HPI over the last 10 years and large inflation during the eighties. This will not be repeated for my generation and thus the ability of parents to help their children will diminish. The activity of the Bank of Mum and Dad will begin a slow decline.

Charterhouse

What are you talking about? The bank took support from the BoE in September 07. I think you need to get your argument straight.

chucky

Charterhouse wrote: »

What are you talking about? The bank took support from the BoE in September 07. I think you need to get your argument straight.

whenever it was that they took support - it was £30bn on the 30th of November 2007 so virtually 2008 when the liquidity issues in the money markets arose. apologies for not giving the exact date.

the point is that you don't want to understand and you continiually come back on is that Northern Rocks issues are not due to it's type of mortgages but due to it's liquidity structure

Charterhouse

I don't want to go into it here (happy to by PM) but I can assure you that I am far more familiar with the company, its structure and its funding strategy than you are. The liquidity crunch gave it problems, yes, but do you think that if by some miracle it had dodged those the quality of the loan book would not yet have put it under immense pressure as well? Smaller Building Socs like Cheshire and Derbyshire had no reliance on money markets at all and were still forced to the Nationwide for support. I do not think it is realistic to suppose that the company would somehow have survived if the funding structure had been different.

chucky

Charterhouse wrote: »

I don't want to go into it here (happy to by PM) but I can assure you that I am far more familiar with the company, its structure and its funding strategy than you are. The liquidity crunch gave it problems, yes, but do you think that if by some miracle it had dodged those the quality of the loan book would not yet have put it under immense pressure as well? Smaller Building Socs like Cheshire and Derbyshire had no reliance on money markets at all and were still forced to the Nationwide for support. I do not think it is realistic to suppose that the company would somehow have survived if the funding structure had been different.

fair enough - my point wasn't that it would survive, it was the cause of their more obvious issues. you can't model a business on how they modelled it, not long term anyway.

Charterhouse

We agree.

chucky

just seen this - just proves that maybe Skipton aren't in such a bad way as they're making out to be

Skipton is set to take over loss-making rival Chesham, it said on Wednesday, in fresh evidence of consolidation in the mutual sector as larger players gobble up crisis-hit rivals.

Skipton, which swallowed peer Scarborough last year, said it remained open to further deals.

http://uk.finance.yahoo.com/news/skipton-to-take-over-rival-chesham-reuters_molt-8fac42f8f3bd.html?x=0

lemonjelly

Charterhouse wrote: »

We agree.

:eek::eek::eek::eek::eek:

Never seen this on the "debate..." board!

What we gonna do now?