Monday, May 25, 2009
Oh dear, 'ow sad, never mind.
Daily Mail: Building societies fight to the death, and only the strong will remain
This is a sector in real financial crisis. Most of the remaining 53 societies have seen profits slashed over the past year, mainly through exposure to failed Icelandic banks, coupled with bad debts resulting from a severely depressed property market.
Some even reported 2008 losses --previously unknown in a sector renowned for its prudence and conservatism.
Things are going to get worse before they get better.
Posted by devo @ 08:24 PM (799 views) Add Comment
4 Comments
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1. devo said...
The revelation from the Council of Mortgage Lenders that funds set aside for approved UK mortgages in April fell by £1 billion to £10.4 billion compared to March has shocked many. However, while this figure in itself is very disappointing the fact that overall UK mortgage lending fell by 60% in the year to April 2009 is even more astounding.
The month by month reduction finally kills any hopes of a short term recovery in the UK property market and will upset many investors and property experts who had hoped the end of the recession was nigh.
http://financialadvice.co.uk/news/7/mortgages/10732/UK-mortgage-lending-fell-by-1-billion-in-April.html
Sunday 24th May 2009
2. sybil13 said...
Doesn't sound good does it for increased lending? Mortgage lending already down nearly 2/3rds or £200bn due to the RMBS market being closed is now further restricted by low interest rates for savers, downgrades with the resultant losses , high payments to the FSCS and a need to rebuild reserves. None of it sounds like a formula for HPI does it?
3. devo said...
2. sybil13 said... Doesn't sound good does it for increased lending?
It's now 'dog eat dog' amongst the financial sector. Any lending at the moment is just for show.
4. mr g said...
"It is expected that the regulator will force those societies it deems to be facing the most serious threat of collapse into the hands of stronger rivals - most obviously sector giant Nationwide, Yorkshire, Skipton or Coventry"
More hype and cr*p
The Yorkshire, Skipton and Coventry have all been down graded recently, so much for sector giants.