Nationwide in trouble?

tawse57

Is news today that the Nationwide are only going to give out mortgages to people with a 255 deposit a sign that they are short of money? Are they about to become another NR?

Surely, at a stroke, they have reduced their new mortgage lending to virtually nil as few will have the 25%?

planemad

Only to properties in London will Nationwide require a 25% deposit.
http://www.thisismoney.co.uk/mortgages/mortgages/article.html?in_article_id=430980&in_page_id=58&ct=5

bristolleedsfan

tawse57 wrote: »

Is news today that the Nationwide are only going to give out mortgages to people with a 255 deposit a sign that they are short of money? Are they about to become another NR?

Surely, at a stroke, they have reduced their new mortgage lending to virtually nil as few will have the 25%?

Those without 25% deposit will pay 0.20% more which is not a big deal considering rates are so low.

geepster

tawse57 wrote: »

Is news today that the Nationwide are only going to give out mortgages to people with a 255 deposit a sign that they are short of money? Are they about to become another NR?

Surely, at a stroke, they have reduced their new mortgage lending to virtually nil as few will have the 25%?

I doubt that Nationwide are in trouble and do not believe for a moment they will be another NR! Their assets (quoted from the Building Societies Association factsheet) as per their latest annual report are £138,638m.

ManAtHome

Yes, but aren't NRs "assets" not far behind (around £115,000m ish..?)

Ian_W

Irrespective of their assets - the OPs info is wrong.

NW are offering mortgages from 5% deposit but the rates are a higher - see NWs FIXED RATES and toggle onto their trackers, all available with with a 5% deposit.

Talk about drama out of a crisis! :rolleyes:

purch

Nationwide require a 25% deposit

Sounds more like a return to sensible lending practices than anything else !!!

notis7

It is not Nationwide who is in trouble - its their greed and the fact that they are taking advantage of the liquidity crisis....

Its other banks and building societies you need to stay away from!

tawse57

notis7 wrote: »

Its other banks and building societies you need to stay away from!

Which ones? What makes you think the Nationwide is so safe?

notis7

Companies like Bradford & Bingley, Alliance & Leicester, London Scottish are feeling very vulnerable at the moment - pshare price is a key indicator for them. I would be willing to go as far as to state that by next year 2 out of the 3 I have mentioned will be bought over or will have merged with someone else. The only reason why I believe Nationwide is fine is this - and this is enough - Savings Deposits. They are the second biggest Savings provider in terms of customer entrusted funds. It has no funding issues as such!

tawse57

Um, who are the biggest savings provider in terms of customer entrusted funds? I thought the Nationwide was the biggest?