Here's a list of Building Societies lending to sub prime borrowers!!

MattB_4

Rafter wrote: »

The problem is that savers want to receive 6.4% on their savings and pay 6% on their mortgages (if they are a good credit rating)

It costs a building society about 0.75% per year on average to run itself.

So immediately it is a loss making business!

A slight over simplification there though.

baby_boomer

Yes. Fortunately for the BSs, not everyone is an MSE addict .

MattB_4

Much as you're try to be funny you are bang on! Rate doesn't matter to everyone. But then some people want to use there passbook 2000 times a year! :O

harryhound

Conrad wrote: »

I why do you think investors do not want to give N Rock funds for mortgage lending?

Sub prime lending is the reason no investors have an appetite any longer.

And why do you suppose they no longer want to provide funds?

Could it be they recognise THE HUGE DEFAULT POTENTIAL.

Chelsea BS for example; Thier total lending book last year featured 52% 'specialist' mortages which means sub prime and self cert (no income proof).

Not sure I'd trust my money to such people, but you go ahaed.

Hi Conrad,

I see you are a Chelsea fan too:rolleyes:

Is there a web site where I can get at these accounts in a standardised format for individual organisations?

The Building Societies Association and Council of Mortgage lenders obviously have this data, as does the FSA but where can we the ordinary punters get at it. After all we have all been told to avoid "Moral Hazard", but we don't have the tools.

Harry.

PS Did you listen to Greenspan on the radio this morning; he in effect said that wealthy people who lose 80% of their shirts chasing asset bubbles, serve themselves right. They should invest in something "productive".
Thinks: must cook one of my gold bars for lunch.

bristolleedsfan

MattB wrote: »

Much as you're try to be funny

babyboomer is always funny imho :beer:

harryhound

On another thread, that is debating the safety of Building Societies versus banks, I found this link.

http://www.fitchratings.com./corpora...tent=issr_list

"Fitch" seems to quite like "Chelsea"; its "stable".

However I don't really understand what the ratings mean, nor do I understand the complex computing involved in trying to analyse the value of the packaged assets. Does anyone?

Harry.

melbury

My simplistic view used to be that people saved with a bank or building society and they then lent that money to other people for mortgages, of course we all know differently now!!:rolleyes: Oh, ignorance was bliss!!

Fella

A big factor here is size. That list of 10 includes 6 of the biggest 7 building societies:

01 Nationwide
03 Portman
04 Yorkshire
05 Coventry
06 Chelsea
07 Skipton
10 Derbyshire
12 Cheshire
15 Stroud & Swindon
18 Scarborough

Most of the others are too tiny to be getting involved with fancy stuff.....

It's worthwhile looking at the list if you've never seen it before.....Nationwider are practically as big as every other BS put together......

http://www.bsa.org.uk/docs/consumerpdfs/assetslistjan2007.pdf

Edit: Since the merger with Portman Nationwide are substantially bigger than every other BS put together!

This raises an interesting point: Since Nationwide are comfortably the only BS big enough to float as a bank in their own right, there's an argument for stashing any substantial savings money with them. It may not get the absolute top rate of interest, but in the past having say, £50K with a BS would have netted you a few extra thousand when they floated. For very little risk it's a decent punt on a windfall.


regards
Fella

Conrad

noh wrote: »

Is it relevant?
Northern Rocks problems weren't caused by their sub prime lending. They were caused by their reliance on the wholesale money markets for their funding.

Nigel

Well I wrote this thread last year as a heads up with regards to potential lending problems with these B Societies. It would appear that Cheshire and Derbyshire have been taken over by Nationwide due to bad lending.

Thankfully they weren't left to go under taking deposits with them.

I'm thinking of getting a safe:eek:

Short_Seller

Nationwide have exceptionally strong balance sheets in this current environment.

They have the highest Credit Rating of all the BS's.
If However the rating agencies change the stance then of course people should question there savings with them..

See for yourselfs how strong the ratings are..
http://www.nationwide.co.uk/investorrelations/credit-ratings/default.htm

Ratings explained here:

http://www.nationwide.co.uk/investorrelations/credit-ratings/credit-ratings-key.htm