Nationwide - Not so different?

[Deleted User]

ReportInvestor wrote:

Should MSE send a representative to the next "Meet the Directors" event at the London Emirates Stadium on 26th November to press Nationwide on this crucial matter?

Book your place at the 26th November Nationwide talkback to meet directors Stuart Bernau and Jeremy Wood

Just to warn anyone intending to go along, the date that Nationwide are giving for this meeting is the 23rd November!

ReportInvestor

BBC

Nationwide to officially reverse their mortgage policy started in 2001

New customers to get better rates than existing members

As I explained earlier on the thread that this 2001 policy was being gradually phased out. And it might have some beneficial side effects.

ReportInvestor wrote:

Why has Nationwide not been up to the mark in best buy saver products over the last five years?

It's because of its daft mortgage policy initiated in 2001 when they mistakenly thought they could transform the mortgage market.

Gorgeous_George

I think Nationwide underestimated the stupidity of the British public.

Headline rates attract new customers. Once on board, customers are reluctant to move their mortgage.



GG

ReportInvestor

Two contrasting views from the article:

""These changes enable us to offer really competitive mortgage deals to customers whether they are changing home, changing lender or changing their deal," [Nationwide director Stuart Bernau] said.

>>>>

"It's quite incredible that a company which has been advertising as a key feature the fact that they offer the same 'great' deals for all customers could do an about-turn like this," [Ray Boulger of the mortgage brokers Charcol] said."

>>>>>>

RI - This also means that the Nationwide & Portman mortgage policies are more synchronised from December.

regularsaver1

Nationwide are doing what halifax are doing

2 fields of customers:

1. Home purchases
2. Remortgages and existing customers

Still same deal for new and old customers coming in though so not all bad

ReportInvestor

First time buyers should benefit .

Milarky

ReportInvestor wrote:

BBC

Nationwide to officially reverse their mortgage policy started in 2001

New customers to get better rates than existing members

As I explained earlier on the thread that this 2001 policy was being gradually phased out. And it might have some beneficial side effects.

I remember you bringing that up. As they now seem to be following your advice/prediction on the mortgage market, what are likely to do to (eh 'for') savers then? Can we expect a clear out of the forest of discontinued accounts (a la 'Liquid Gold'?)

It also undermines their defence of 'mutuality' (which implies the non-differential pricing of products so everyone comes out more equal)

Jnelhams

At the end of the day, I can not see a valid reason for any of the so called 'Mutuals' to be Mutual, as members we do not receive any benefits over and above the rates available from Stock market listed companies.

Mutuals are a con, they are designed to keep fat cats fat at our expense.
I know the Nationwide offer a good credit card for overseas purchases, but that does not account for the millions they make in surpluses, neither does the old members bond. It is a sham, at least as a shareholder you get a dividend!

The days of true mutuals, died with the CO-OP divi!

ReportInvestor

Jnelhams wrote:

The days of true mutuals, died with the CO-OP divi!

Midlands Co-op annual report

"...Directors took special pride in being able to reintroduce a true Co-operative dividend, enabling members to share in the success of their Society...."

ReportInvestor

Milarky wrote:

I remember you bringing that up. As they now seem to be following your advice/prediction on the mortgage market, what are likely to do to (eh 'for') savers then?

Well I don't want to get too much of "mystic Meg" reputation because that would go before an inevitable fall , but...

....since I did predict above that this would be the likely consequence of the first decision you mention.

Nationwide increases its savings rates by at least 0.25% - MSE link today

Seriously, I think they've focussed their recent attention on getting in the current account customers and doing down the branch based savings accounts [just like Kent Reliance & many others.] And all this while being handicapped by that idiot mortgage policy decision by Brian Davis (who left immediately after this enormous gaffe with a whopping pay-off courtesy of members ).

Perhaps now we might see more focus on the internet savings rates - not necessarily the top rates but more competitive ones for those many non-MSErs who don't want to endlessly switch their accounts.

And elsewhere on MSE I'm on record that I believe that the Nationwide/Portman merger will bring long term benefits for savings rates at both societies.

This combined society could become the "bar" above which all new entrants to the market (i.e. those that interest us all here) have to jump .