MSE News: Building society breaks tracker mortgage deal to quadruple rates

michaels

Glad you have a product that suits you - however I don't suppose if base rate had gone the other way and you were currently paying a lot less than svr that you would have been too pleased if Nationwide had quoted 'exceptional circumstances' after 5 years and forced you on to a much higher SVR....

socks_uk wrote: »

4 years ago we took out a 10 year fixed rate mortgage with Nationwide (around 5.4% I think) and we don't regret it at all. For another 6 years we know exactly how much we will be paying a month and throughout the 9th year we can monitor the market and adjust our day-to-day living and outgoings for that last year.

We may be paying above the average rates but it's worth it for the peace of mind.

poppy10_2

Pincher wrote: »

It's bizarre, other people's deals seem to be falling apart left right and centre, but Mortgage Express just keeps going.
Maybe there is just a computer running, with nobody in charge.

Pretty much. Mortgage Express was part of Bradford and Bingley which was nationalized in 2008 and is now government owned. They are under no pressure to increase rates and do not need to raise wholesale funding from the markets as they are no longer lending to new customers.
They are just winding down their existing loan book.

Thrugelmir

michaels wrote: »

Glad you have a product that suits you - however I don't suppose if base rate had gone the other way and you were currently paying a lot less than svr that you would have been too pleased if Nationwide had quoted 'exceptional circumstances' after 5 years and forced you on to a much higher SVR....

We are dealing with the situation as it stands today. Not a fantasy scenario nor a game. The seriousness of the situation should not be underestimated.

One day even the NW may have to break ranks. If its a necessity to stay solvent. At that point the floodgates will have well and truly opened.

jamesd

socks_uk wrote: »

4 years ago we took out a 10 year fixed rate mortgage with Nationwide (around 5.4% I think)

It's worth checking whether it is worth changing to a mortgage deal with a lower long term fixed rate, which may be available now. Could be cheaper even with penalties.

Thrugelmir

poppy10 wrote: »

They are under no pressure to increase rates and do not need to raise wholesale funding from the markets as they are no longer lending to new customers.

The Treasury funds NRAM at a rate of 5.5%. Current exposure is around £25 billion.

Over time the wholesale funding in NRAM will require refinancing as the mortgage book is still around £85 billion. So some years before the debt is finally repaid.

dobsoncrew

The good old T&C's or small print

dobsoncrew

What a bunch of theives

brit1234

Thrugelmir wrote: »

One day even the NW may have to break ranks. If its a necessity to stay solvent. At that point the floodgates will have well and truly opened.

I can see Nationwide definitely putting rates up. They are often giving the best rates to savers in the league tables so their profits must be near zero on those. It's not sustainable and mortgage rates have to go up. I have £55k in one account and about to place it in an another at a even higher rate.

Min £25k: Nationwide 3.17% AERYet only 1 penalty-free withdrawal. Min £25,000 deposit

Interest paid monthly

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Thrugelmir

brit1234 wrote: »

I can see Nationwide definitely putting rates up. They are often giving the best rates to savers in the league tables so their profits must be near zero on those. It's not sustainable and mortgage rates have to go up. I have £55k in one account and about to place it in an another at a even higher rate.

The saving grace for Nationwide is that a fully functioning bank it does operate current accounts. So does obtain a source of liquidity from these.

Looking at the 2011 accounts reduced net lending by around £3 billion and used the cash generated to strengthen capital reserves. So most certainly a policy of battening down the hatches. As total lending peaked in 2009 and has been declining since.

oldvicar

datostar wrote: »

The vultures will be circling the Manchester by now. This indicates possible difficulties in balancing the books. Nationwide seems to like to snap up distressed BS's. The Co-op seems to have swallowed the Britannia satisfactorily now, but might be about to lose out on the Lloyd's branches so they might be a possibility. Santander hasn't completely digested the A&L and B&B yet but might fancy a minnow. Watch this space...

I think suggesting that Nationwide 'likes' to snap up distressed societies is putting it a bit strong, and suggests that when it does this sort of thig it is acting out of self interest.

Yes, if Manchester were to hit the buffers, I suspect Nationwide would ride to the rescue with a 'merger'. But I don't think its motivation would be the growth offered by getting another branch in Manchester.

Rather it would be a more-or-less philanthropic move to safeguard the reputation of the Building Society movement as a whole. On the other hand, since Nationwide is well over half the BS movement all on its own, there could be just a tad of self-interest at play.