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spyguy

Is Nationwide The Next Co-Op?

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Article for those with subs

Nationwide steps back from SME loans

http://www.ft.com/cms/s/0/7d3d0388-0d72-11e3-ba82-00144feabdc0.html?siteedition=uk#axzz2cym9MaAH

I know the Nationwide has been hoovering up a lot of business over the last few years.

They used to be pretty sniffy/cautious about who'd they'd lend to.

They seem to have been holding their nose and crossing they're fingers of late.

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BMR is Nationwide's biggest problem. They have to subsidise it from somewhere.

For those on it there simply is no incentive to leave, you might find a cheap 2 year deal which gives you a lower rate but it what happens once that teaser is over that's the problem as you won't find a SVR which comes any where close and you might not get another cheap deal.

I do think that they have given up trying to get people off the BMR they know no one is moving, hopefully those on it will be overpaying, if that's the case the question is are they overpaying fast enough.

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They seem to have been holding their nose and crossing they're fingers of late.

You know how the big banks HATE Building Societies, well I would not be surprised if Goldman had got one of the crooks on the inside to deliberately blow it up.

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Article for those with subs

Nationwide steps back from SME loans

http://www.ft.com/cm...k#axzz2cym9MaAH

I know the Nationwide has been hoovering up a lot of business over the last few years.

They used to be pretty sniffy/cautious about who'd they'd lend to.

They seem to have been holding their nose and crossing they're fingers of late.

Does 'SME' really mean 'BTL?'And does BTL really mean sub prime/self cert?

We ought to be told!

Edited by aSecureTenant

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my personal opinion is the nationwide are a bank now in all but name. they seem to be in bed with the government and they care not for their customers. im not 100% happy about the money ive deposit with them currently and eventually me and the countess will be closing down our accounts, but in the meantime i keep an ear to the ground for any news on them.

ironically, the northern rock tops my list of organisations i feel enjoyable depositing money with!

Edited by TheCountOfNowhere

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BMR is Nationwide's biggest problem. They have to subsidise it from somewhere.

For those on it there simply is no incentive to leave, you might find a cheap 2 year deal which gives you a lower rate but it what happens once that teaser is over that's the problem as you won't find a SVR which comes any where close and you might not get another cheap deal.

I do think that they have given up trying to get people off the BMR they know no one is moving, hopefully those on it will be overpaying, if that's the case the question is are they overpaying fast enough.

They've given us no particular reason to move..

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They've given us no particular reason to move..

I don't see how moving banks in a more flowing less stress free way is going to do much to improve what we already have got.....a lack of competition....one bank is as much the same as another.....the same way as one energy company is much the same as another.

They entice you in with a 'special' offer and hope you don't notice when it is withdrawn (new customers only) or turn all apathetic and continue to stick with a new bad deal.....we should not be having to change banks, insurance cos, energy companies, supermarkets etc etc every five minutes...it then becomes like a full time job that not everyone is capable of doing the elderly for instance....what people want is consistency, reliability, safety, honesty and value for money with an excellent customer service..... not to just grab you in with an expensive advertising commercial and treat you like a statistic thereon after......better the devil you know, best to make threats to the devil about moving than move without speaking up.....then see how valuable business is to them.....or is it they use the carrot and are only after quality, the quantity gets the rough end of the hitting stick as per usual. ;)

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You know how the big banks HATE Building Societies, well I would not be surprised if Goldman had got one of the crooks on the inside to deliberately blow it up.

They don't need any help - dealt with them a few years back, they were absolutely incapable of dealing with a request that fell outside their narrow "processes and procedures" flowchart.

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You know how the big banks HATE Building Societies, well I would not be surprised if Goldman had got one of the crooks on the inside to deliberately blow it up.

Interesting. The fact was not lost on me that most the worse offenders during the credit bubble we're all EX-building societies who had gone for the 'grow or die' model:

Bailed out by Lloyds:

Halifax: EX-BUILDING SOCIETY

Cheltenham and Gloucester: EX-BUILDING SOCIETY

Bailed out by govt:

Northern Rock: EX-BUILDING SOCIETY

Bailed out by Santander:

Abbey: EX-BUILDING SOCIETY

Alliance and Leicester: EX-BUILDING SOCIETY

Bradford and Bingley: EX-BUILDING SOCIETY

Maybe one good thing labour did (or maybe even before labour?) was to take away the carpetbagger incentive.

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Interesting. The fact was not lost on me that most the worse offenders during the credit bubble we're all EX-building societies who had gone for the 'grow or die' model:

Bailed out by Lloyds:

Halifax: EX-BUILDING SOCIETY

Cheltenham and Gloucester: EX-BUILDING SOCIETY

Bailed out by govt:

Northern Rock: EX-BUILDING SOCIETY

Bailed out by Santander:

Abbey: EX-BUILDING SOCIETY

Alliance and Leicester: EX-BUILDING SOCIETY

Bradford and Bingley: EX-BUILDING SOCIETY

Maybe one good thing labour did (or maybe even before labour?) was to take away the carpetbagger incentive.

Isn't that saying something like retail banking can't support itself without the help of other side of banking, investment, shadow banking and as a last resort public money support......splitting the two is a good thing for account holders as long as it is a viable workable business model where it would be possible to support itself..........look at retail shops, they find it hard enough to make ends meet with all the costs taxes, rents and wages, so how do the banks and building societies that no longer share resources ie share each others premises any more because they are all in 'so called' competition with each other?...... ;)

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Isn't that saying something like retail banking can't support itself without the help of other side of banking, investment, shadow banking and as a last resort public money support......splitting the two is a good thing for account holders as long as it is a viable workable business model where it would be possible to support itself..........look at retail shops, they find it hard enough to make ends meet with all the costs taxes, rents and wages, so how do the banks and building societies that no longer share resources ie share each others premises any more because they are all in 'so called' competition with each other?...... ;)

There is money to be made but shareholders and management have to accept that the profits have to reflect the lower level of risk involved in performing basic banking functions that most customers want.

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They don't need any help - dealt with them a few years back, they were absolutely incapable of dealing with a request that fell outside their narrow "processes and procedures" flowchart.

Should have stuck to what they knew....taking deposits and providing mortgages

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http://www.theguardian.com/business/2013/aug/27/bank-england-nationwide-delay-business-lending

The Bank of England has denied that its insistence on Nationwide holding a bigger capital cushion had forced the UK's largest building society to slow its launch of small business lending.

Nationwide admitted plans to expand lending to small- and medium-sized enterprises (SMEs) are unlikely to take effect until 2014 at the earliest.

It said plans to begin lending to smaller firms were still under development but "moving slowly"; , it denied a report that it had shelved a planned launch date for later this year.

So we have an official denial.

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Your link. First I'd heard about this.

Analysts at credit ratings firm Standard & Poor's followed with a warning that a doubling in the losses on commercial property loans to £450m weakened the lender's financial position.

S&P downgraded Nationwide's credit rating this month and signalled that further downgrades could follow without a rapid improvement.

Edited by Venger

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BMR is Nationwide's biggest problem. They have to subsidise it from somewhere.

For those on it there simply is no incentive to leave, you might find a cheap 2 year deal which gives you a lower rate but it what happens once that teaser is over that's the problem as you won't find a SVR which comes any where close and you might not get another cheap deal.

I do think that they have given up trying to get people off the BMR they know no one is moving, hopefully those on it will be overpaying, if that's the case the question is are they overpaying fast enough.

You've just described my situation. And at 2.5% there's no reason to move. I've factered in possible rate increases (which isn't going to happen now Carnage is at the wheel - while heading for the cliff) and I'm overpaying as much as I can afford. One the other hand my NW savings rate has dropped from 2% to 1.2% in the space of 9 months.

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Nationwide are a funny one, they have committed to keeping the BMR on more than one occasion, yet seem to treat their members and staff with contempt in many other areas. Perhaps shedloads of their staff are on BMR and it would be a step too far to push them off it.

But, the pressure on the BMR is increasing all the time. They are trying to solve it by pumping BTL lending, but they appear to be sailing close to the wind. Looks like there's a non-zero likelihood of them being forced to seriously considering abandoning the BMR.

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