Monday, Apr 28, 2008
But wasn t £50bn all we needed to un-clog the mortgage misery?
Times: Nationwide and Abbey turn the screw on mortgage
"Nationwide, the UK's biggest building society, and Abbey, the third-biggest lender, announced a raft of new rules today that will squeeze out borrowers who do not have a deposit of at least 10 per cent of their property's value, after chopping the maximum loan size from 95 per cent to 90 per cent for the majority of deals" Nationwide also announced that it would reject borrowers with £1 million loans, after cutting its maximum loan size from £1 million to £500,000" TIIIIIIIMMMMMBER!
Posted by confused76 @ 04:21 PM (1606 views) Add Comment
20 Comments
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1. renting2 said...
So, GB and his crowd of numpties have now learned a very valuable lesson, at OUR expense. Don't give the banks a f*****g inch ............... or they'll take the odd £50-100 billion.
2. cornishman said...
renting - what makes you believe that they've actually learned anything?
3. mark wadsworth said...
Brilliant. This credit crunch is developing almost by the hour.
4. Renting2 said...
Sorry cornishman, you're so right! What a ridiculous premise I was working on.
5. last_days_of_disco said...
Yeah, I must say, last month you could get a remortgage for 4.99% from first direct, fixed fro 5 years. Now within a very short period compared to the usual snail like pace of changes in interest rates the best you can get is 6.3% from HSBC (yeah I know first direct was an HSBC company).
Its not surprising how quickly this is happening (we knew it would -- its called a crash). Its just hard to keep up with all the articles on the blogg.
6. planning4acrash said...
Chelski peeps with more than 500k mortgages who can't swap from these providers (all with more than 90% LTV?) Will find themselves on the SVR scrap heap. Increasing numbers will experience this over time in a falling market.I always fancieda cheapWC1 add!
7. uncle tom said...
When the govt leant on the banks to reduce their rates, and the lenders duly reduced their SVR's, I observed that the other rates would have to rise to compensate.
Now we have the bizarre situation whereby the SVR is becoming the cheaper deal, and the lenders are having to reserve it for existing customers.
I think there's quite a good chance the SVR's will be raised again soon - probably on the eve of the next MPC decision.
8. dohousescrashinthewoods said...
"Splat" went the middle-class property bug as it hit the windscreen of global economics and the comeuppance radiator grille of elite monetary manipulation.
9. planning4acrash said...
Call it market decapitation, if you will! Whatever you call it, its amazing. Of course, its actually more amazing that these loans were offered in the 1st place, but owners fancied themselves as paper millionaires. B(w)ankers & poly-ticians happy2 oblige!
10. planning4acrash said...
Call it market decapitation, if you will! Whatever you call it, its amazing. Of course, its actually more amazing that these loans were offered in the 1st place, but owners fancied themselves as paper millionaires. B(w)ankers & poly-ticians happy2 oblige!
11. Bananasplit said...
it's fun watching the financial markets do what use to do !
12. whiteknight said...
Oh. Its worse than that.
How are you going to persuade a set of oil refinery workers, teachers and civil servants that a 2.5% pay rise and an adjustment in pension scheme terms is fair?
13. icarus said...
Broon, Badger and Swervyn probably knew the £50-100 bn wouldn't help the mortgage market. Badger had to "urge" the lenders to lend (just as last week Caroline Flint had to urge the builders to build). When they have to urge you know their policies / incentives / the market aren't working and that the urging is just another politcal noise.
14. Ijjhall said...
It's the greater scrutiny on interest only mortgages that is really significant. My BTL landlord - really cocky- has 4 IO mortgages and last year pre credit crunch when I queried the logistics of that he boasted that capital appreciation would pay them all off and his retirement pot as well..mind you why am I laughing ? I will get caught up in his downfall as will all those other tenants caught up in this crash landing.
15. A Saver said...
Cannot believe anyone is lending 90% LTV now. Just asking for trouble, when values in some areas have probably already slipped more than 10% and HPC is only just getting started. If I was a shareholder of one of these banks Í would be majorly pi**ed off at them for taking such risks. Don't they read our blog?
16. alan said...
Gulp...!
Whatever happened to "Nationwide has mutual (as opposed to Public Limited Company) status, which means that we are owned by and run for the benefit of our members"?
C'mon lads you can't screw us - you're supposed to be the good guys.
17. Waitingtobuy said...
thought somebody might be interested in this email from Allsops auctioneers--Barclays selling the family silver!!!
Dear Investor,
We are delighted to inform you that our May Auction is now available online. The sale will take place on Tuesday 20th May at the Cafe Royal, 68 Regent Street, London W1.
Once again we are offering a wide range of properties located throughout the UK. With a limited supply of investment properties currently on the market, we are pleased to be offering a catalogue which contains 202 lots including;
34 lots from Barclays Bank which include both sale and leasebacks and vacant units previously occupied by Woolwich. 12 sale & leasebacks from HSBC, 16 sale & leasebacks from Lloyds Pharmacy, 7 from William Hill
18. it_is_going_with_a_bang said...
Nationwide is pulling out of the London market then - without actually saying it.
Interest only Pull out. That is really going to hurt a lot of people.
Talk about avoiding the crap lending. If all banks went this way the HPC would hit like a large meteorite.
Kind of makes Gordon look like a complete idiot. He must be seething. Oh to be a fly on the wall.
19. Duncan said...
I went into the local Nationwide on Saturday. It seemed like every other person was converting their ISA to the latest
6.15% two year fix. The trouble is they are having to compete with Northern Rocks 6.0%
Unless the Swiss, UAE or British Governement want to invest a load of money at a much lower rate what are the
chances of Nationwide being able to offer mortgages under 6.5% ?
:- Duncan
20. shipbuilder said...
I can just imagine Gordon throwing stuff around his office - "F*cking banks, why won't they drop their rates when I tell them? I AM THE PRIME MINISTER!!!"
The funny thing is, this is acting as a kind of double whammy - not only are buyers waiting for prices to drop, but the more Gordo goes on about the bank's 'responsibility' to pass on rate cuts, the more the buyers will wait in anticipation of a better mortgage deal. Who wants to get stuck on a fixed rate now if the banks start offering better deals again after a few more BofE cuts?