Higher mortgage rates might be on the cards at the following banks

NPowerUser

Higher mortgage and borrow rates might be on the cards at the following banks and building societies if Moody's downgrade any of them.
http://www.thisismoney.co.uk/news/article.html?in_article_id=534588&in_page_id=2&position=moretopstories


Lloyds Banking Group
Royal Bank of Scotland
Santander UK
Bank of Ireland UK
Co-Operative Bank
Coventry Building Society
Nationwide Building Society
Newcastle Building Society
Norwich & Peterborough Building Society
Nottingham Building Society
Principality Building Society
Skipton Building Society
West Bromwich Building Society
Yorkshire Building Society


If it ends up costing more for them to borrow money on the open market, it stands to reason then rates might have to be increased to maintain margins. The review will take 3 months.

dimbo61

So you have some good ,bad and excellent lenders in that group !
Will be interesting so see what happens but 2 lenders shine in that group
Coop and YBS are well run lenders with good mortgage books

de1amo

i am wondering what will happen with my brittania mortgage as they are connected to the co-op-?-time to look about!!

kingstreet

Say what you want about Santander, but they are in the process of getting away a £3.75 billion RMBS of AAA rated UK-based residential mortgages. That has to be the absolute cream of the Abbey book. It's the biggest offer since 2008 and it shows there's still an appetite for investments backed by quality mortgage lending.

I'm not sure if the capital is being used for balance-sheet bolstering or further lending, or a combination of the two.

kingstreet

de1amo wrote: »

i am wondering what will happen with my brittania mortgage

Nothing. The article is suggesting these lenders may have trouble getting wholesale funding as cheap in the future if they are down-graded.

At worst, it means their deals for new borrowers might not be as good as they have been.

Nayma12

I wanted some advice regarding my re-mortgage. It is not due until june 2013 but am about to start a dmp and want to know how this will affect my chances of getting another fixed deal with Santander ( my current mortgage is with them). We have always paid our mortgage and never defaulted but am worried that they may terminate the mortgage. Can they do this? I understand that my credit rating will be terrible but do people on dmp's still get mortgage deal of any kind or are they stuck on tracker rates?


Any help would be really appreciated.

Yorkie1

I suggest you post a new thread rather than tagging onto an unrelated topic, Nayma. You start a new thread by clicking the button on the main index page for the mortgages board (rather than on this individual thread page)

Nayma12

Thanks - was wondering how to do that.

Nayma12

HI, know this sounds stupid but have been to the main mortgages board but cannot find any button for posting a new thread.

opinions4u

kingstreet wrote: »

Nothing. The article is suggesting these lenders may have trouble getting wholesale funding as cheap in the future if they are down-graded.

At worst, it means their deals for new borrowers might not be as good as they have been.

I would also expect them to increase their SVR by a little bit more than they would have planned next time there's a BBR change.

Savings rates for fixed term products will probably rise soon.

Nayma12 wrote: »

HI, know this sounds stupid but have been to the main mortgages board but cannot find any button for posting a new thread.

Top left hand corner.