Portman merger - Question to brokers

ReportInvestor

There has been some discussion on the Savings board [ See here ] as to whether the Nationwide / Portman merger is likely to be a good thing for consumers, in spite of such claims by MoneyFacts, the Building Societies Association, some mortgage brokers, the majority of the press & , of course, Nationwide itself.

From a purely mortgage point of view do you have any views either way on the subject?

ctabuk

We live with a shrinking market place, not in terms of Lenders writing new business, but in an era of Call Centres and simply the lack of old fashioned levels of service. One day, who knows, they may wake up and realise that big is not beautiful. But from a Brokers point of view -good news for Brokers, Bad news for the General Public as I believe lots of Local Community Branches will dissappear. Sad.

TangentMan

I am not a broker, but as an interested industry watcher :-

From a purely mortgage point of view it is one less competitor in the market.
Having said that, the market is incredibly competitive running on quite ludicrously small margins so i don't think the removal of the portman from the mix will actually make any difference.

From a competition point of view (i.e. what is good for a consumer) Nationwide is more important that the portman. Nationwide will still be battling with HBOS, RBS, Abbey, Woolwich etc).

Whilst Portman will go from the high street, it remains to be seen if the rband will disappear (a brand is a useful thing - think Birmingham Midshires after the HBOS take over, think recent announcements by Barclays regarding Woolwich).

Therefore it might enable Nationwide to play in a niche market under the Portman brand which might be good news for those in the niche.

MortgageMamma

I personally think it is a good thing as I'd hope it would result in overall more competitive products which is good for the customer. I have never had a problem with Nationwide from a servicing point of view I think they are excellent and really like them, but with all big changes to businesses I am expecting a few little glitches as the company undergoes its metamorphosis (is that how it is spelt ?!)

Milarky

TangentMan wrote:

Therefore it might enable Nationwide to play in a niche market under the Portman brand which might be good news for those in the niche.

Haven't they already stated that it's going to be called 'Nationwide' from day one? - The last Merger was in 1987, with Anglia. It was called 'Nationwide Anglia' for five years and then shortened to 'Nationwide' again.

TangentMan

HBOS is called HBOS but they still use the Birmigham Midshires (i.e. BM Solutions) brand.

Nationwide have said that the combined group will be Nationwide and that all the branches will be nationwide. That is not the same as saying they won't use the portman brand for anything and wouldn't preclude them entering a new market under said brand.

ReportInvestor

All things seem possible as Nationwide itself isn't quite clear what it's going to do.

Times

"....Nationwide product managers are unsure how Portman deals will be brought into line with their own. A Nationwide spokesman said: “There are still unanswered questions, but we’re likely to synchronise rates on Portman and Nationwide products..."

One thing that will definitely go, is Portman's archaic use of annual interest calculations as they strove to make the "best buy" tables.

Thanks for all the interesting input so far. Anyone for any more?

Joe_Bloggs

Did they mention what will happen to their tally stick and abacus collection.
J_B.

payless

still a shame to see more lenders go ,looks like this will mean
Staffs, Lambeth & Portman will all go ( or if stay - only as a brand of the larger outfit)