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Pensioner Bonds Could Limit Mortgage Availability In 2015

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New Government-backed Pensioner Bonds that will launch in January could create havoc for banks and building societies, according to the head of Nationwide Building Society.

Brian Morris, head of savings policy at the Building Society Association, said: ‘It is inevitable that we are going to see several billions of pounds transferred by savers from building societies and banks to NS&I when the pensioner bonds hit the market early next year.

'The Government has signalled the pensioner bonds will be offering interest rates which the private sector is unlikely to be able to match.

‘Whilst it is helpful that the Chancellor has given the industry ten months’ notice of the introduction of NS&I's pensioner bonds, and these savings outflows may well be offset by inflows into new cash Isas later this year, the bonds will nonetheless impact building societies' funding plans and, in turn, could affect their ability to lend to homebuyers around the turn of this year and into early 2015.’

Read more: http://www.thisismoney.co.uk/money/saving/article-2642905/NS-I-Pensioner-Bonds-create-savings-stampede-banks.html#ixzz33CDH3pdR
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http://www.thisismoney.co.uk/money/saving/article-2642905/NS-I-Pensioner-Bonds-create-savings-stampede-banks.html?ito=email-tim_savingsnewsletter-20140530115301

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The article: ‘If more savers move their money, banks will need to compete harder – which should boost rates.’

It used to be, under rules which made sense, before society took to crudely worshipping HPI and banks borrowing more from markets to finance bigger mortgages, that banks were limited to how much they could lend, by the amount they had on the savings balance side of things.

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Is it legal to offer one section fo society better interest rates than others ?

I would like to see this go to court.

Has discrimination written all over it.!!!!

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Nationwide CEO shouts "we are running out of money and its nothing to do with our campaign to lend to all and Sundry with the weakest of criteria, my bonus or our general management"

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Nationwide CEO shouts "we are running out of money and its nothing to do with our campaign to lend to all and Sundry with the weakest of criteria, my bonus or our general management"

What on a £2.25 Million package :o

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