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Guardian: 95% Mortgages "not a source of risk"
Comments
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grizzly1911 wrote: »A lot of their income is fee income and cross sales in addition to the lending margin.. If they aren't doing the business then this income falls. their overheads don't fall as quickly and cost/income ratios deteriorate or they compensate somewhere else.
IF RBS and Lloyds are state controlled, in one way or another, why doesn't the government simply turn on the taps?
Wouldn't have much choice if I want to buy it energy. I could go to a "competitor" and see if they would supply it cheaper. Oh, wait, no that doesn't seem to work either. In fact I don't really have a clue what margin they really make with their supply model.
If I couldn't afford it I wouldn't buy it.
BTW Dividend at Centrica increased to c.5%, Barclays c.2% (used to be c.5%).
Fee still involved at end of fixed terms etc.
Prior to credit crunch banks made a good profit with much lower margin even back it the 70s when there were no arrangement fees.0 -
How does the mark up on mortgage rate compare to gas mark up
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all the banks are making sufficient operating profit
the reason they show huge losses is that they have not yet writtten down their bad debts (all those toxic loans) and so are doing a bit each year0 -
Fee still involved at end of fixed terms etc.
Prior to credit crunch banks made a good profit with much lower margin even back it the 70s when there were no arrangement fees.
I take it you mean a renewal fee? All part of the same sausage machine. If new meat isn't going in at the front sausages dry up.
You are right banks were still profitable back in the 70s and 80s. have you any data on margins? They always made a big play about containing/reducing cost/income ratios too.
Margins were helped by income streams such as PPI which has been running in one form or another from the 90s. As Clapton points out the bad debts will be run off for some time to come too."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »I take it you mean a renewal fee? All part of the same sausage machine. If new meat isn't going in at the front sausages dry up.
You are right banks were still profitable back in the 70s and 80s. have you any data on margins? They always made a big play about containing/reducing cost/income ratios too.
Margins were helped by income streams such as PPI which has been running in one form or another from the 90s. As Clapton points out the bad debts will be run off for some time to come too.
The bad debt you are referring to is not UK mortgage debt0 -
The bad debt you are referring to is not UK mortgage debt
Remember those quaint institutions called Building Societies who did mortgages and savings and Banks who did current accounts, personal loans and overdrafts and the corporate stuff, money transmision etc.
Then someone decide it would be a good idea to let them compete."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Thanks.How does the mark up on mortgage rate compare to gas mark up
What does it show part from gas prices have gone up?
I wonder what pre privatisation figures would have looked like or profit margin added into wholesale electricity generation?
Not to mention paying for green initiatives, subsidising those who can;t afford to pay, wind turbines and PV feed in tariffs. Don't think the suppliers needed those to be added ."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Lenders tell me that even thier lie to buy self cert books remain high performing with a very low delinquency rate.
How can they tell you that when banks such as barclays and lloyds can't even tell shareholders how many of their customers are undergoing special measures under forebearance?0 -
And may I say I love the notion that any other private companies, be it water, electric, gas, transport should be able to do what they want, and 10% profits are low.
Come to banks and those wanting HPI suddenly forget everything they have said about other companies...suddenly the banks are evil.
But a pensioner paying their electric bill should suck it up and weep.0 -
grizzly1911 wrote: »Thanks.
What does it show part from gas prices have gone up?
I wonder what pre privatisation figures would have looked like or profit margin added into wholesale electricity generation?
Not to mention paying for green initiatives, subsidising those who can;t afford to pay, wind turbines and PV feed in tariffs. Don't think the suppliers needed those to be added .
It shows that gas retail companies charge an extra 50% on the price they pay and still make a reasonable profit while the banks add over 600%.0
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