Nationwide in trouble?

lilac_lady

Years ago when I first got married we needed a mortgage of £900...yes £900... to buy a one bedroomed flat. We were advised by our building society that we might be overstretching ourselves as the payments were £13 per month. The building society was Northern Rock. Pity they didn't stick to their old rules. (BTW we got the mortgage elsewhere.) Nationwide is just being sensible.

bristolleedsfan

lilac_lady wrote: »

Years ago when I first got married we needed a mortgage of £900...yes £900... to buy a one bedroomed flat. We were advised by our building society that we might be overstretching ourselves as the payments were £13 per month. The building society was Northern Rock. Pity they didn't stick to their old rules. (BTW we got the mortgage elsewhere.) Nationwide is just being sensible.

When i was 18, Halifax turned me down for a morgage even though i had a savings account with them because i was wanting over 4x my income, Anglia Building Society ( later merged with Nationwide) gave me the morgage i needed.

Nationwide are merely charging xtra 0.20% for higher percentage morgages, whats that got to do with being sensible ?

Cozworth806

I wonder if they will pull their advert which states no higher lending fee? This is simply the same thing, and yet again instead of championing mutuality it is showing itself to be a bank by another name. (Overcharging for overdraft fees, average savings rates, average mortgage rates, poor customer service)
I just wish they would convert and have done. Maybe they ought to buy out B&B or A&L for a laugh.

MattB_4

An HLC is an upfront fee rather than loading for higher LTV. This is related to risk and is perfectly sensible. I can't claim to know loads about NBS mortgages but I'm pretty sure there have been higher rates for higher LTV's for some time. At least on something like 92-95% LTV.

I certainly hope NBS isnt in trouble. If it did i really regret having wasted a day bothering to do work on future projects!

bristolleedsfan

MattB wrote: »

but I'm pretty sure there have been higher rates for higher LTV's for some time. At least on something like 92-95% LTV.

!

Heres an article on the subject.

http://www.thisismoney.co.uk/mortgages/mortgages/article.html?in_article_id=430980&in_page_id=58

[Deleted User]

Nationwide in trouble :rotfl:you must be joking, they are the biggest building society and are bailing out the cash strapped bans by loaning them money off the markets.

Its simple risk based pricing, people without 25% deposits are higher risk given the fact that house prices will crash the equity might not cover the mortgage.

Its the people who are buying housing who will be the ones in trouble not the mortgage makers.

[Deleted User]

planemad wrote: »

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

That makes sense as the heaviest overpricing and the biggest crash will be in london.

Last time the house price crash in london was by far the worst as too many londoners are in too much debt. Londoners have a debt addiction more prevelent then anywhere else in the country.

Last time the least affected was scotland because they are the best savers and dont overstretch themselfs.

BTW Im not scottish and I live just outside london, in the words of Roy Walker "Say what you see"

free4440273

I would expect A&L and B&B to perhaps be in trouble - but Nationwide...doubt it

bristolleedsfan

Yant1 wrote: »

Its simple risk based pricing, people without 25% deposits are higher risk given the fact that house prices will crash the equity might not cover the mortgage.

.

Havent Building Societies only ever had a maximum liability of 75% anyway with an insurance indemnity taken out ( one off premium paid by the morgage holder) to cover the morgage risk 76%-100%.

I know that was the case in the 80s, ive not had a morgage for 15 years so perhaps things have changed. :think:

kazzy

Nationwide is biggest mutual b.s. followed by Britannia. NWide customer service down south since merging with Portman is diabolical. Management should be called to account instead of the poor staff who have to face angry customers