Jump to content
House Price Crash Forum
Sign in to follow this  
rantnrave

Nationwide Reports Record Mortgage Lending

Recommended Posts

'Doing the right thing' apparently...

Nationwide has reported a record amount of mortgage lending for a six-month period and a 34% rise in profits.

For the half year to 30 September, lending was up 14% to £14.9bn, and profits rose to £802m

However, it said that it expected "downward pressure" on its profit margins in its second half and next year due to "robust" competition.

It added that incoming chief executive Joe Garner will take up his position in the spring.

"This has been our best ever half year of mortgage lending along with a strong inflow of savings and the opening of over a quarter of a million new current accounts," said chief executive Graham Beale.

"Mutuals, like Nationwide, are different from the banks... Nationwide is evidence that you can be successful by doing the right thing," he added.

The building society said in its outlook that healthy employment growth and "robust demand from investors" - including buy to let - had driven up prices, especially in London.

But it warned that "such outperformance is unlikely to be sustained over the long term, given that key measures of affordability are already stretched".

http://www.bbc.co.uk/news/business-34876966

Share this post


Link to post
Share on other sites

Also the city index out from Hometrack. A few articles in the press today concerning a pick up in provincial areas. Fwiw in Nottingham I am seeing a sold to stock ratio of circa 50% that compares to about 15% post crash to about 2013. Also staggering because sales usually fall off a cliff in the run up to Christmas. Still got to be looked at in the context that we are only back to the peak in the north compared to +70% in the south.

https://www.hometrack.com/uk/insight/uk-cities-house-price-index/

Actually the stats bare out my commentary re. Nottingham.

Edited by crashmonitor

Share this post


Link to post
Share on other sites
However, it said that it expected "downward pressure" on its profit margins in its second half and next year due to "robust" competition.

Always a bad sign. "Competition" usually leads (ultimately) to bank failures.

Edited by R K

Share this post


Link to post
Share on other sites

The last squeeze of the bubble?

Anecdotally, virtually everything in my preferred area below 200k is stc, in five years i have never witnessed anything like it.

Share this post


Link to post
Share on other sites

The last squeeze of the bubble?

Anecdotally, virtually everything in my preferred area below 200k is stc, in five years i have never witnessed anything like it.

Do we have any stats yet to indicate whether this most recent bout of madness is the result of Boomers cashing in pension pots to use as BTL deposits?

Share this post


Link to post
Share on other sites

Always wondered what 'doing the right thing' meant. Helping to engineer an echo housing bubble, obviously. :rolleyes:

Any HPC Twitterati out there care to Tweet Nationwide and ask if empowering BTLers at the expense of FTBers counts as 'doing the right thing'?

Share this post


Link to post
Share on other sites

Nationwide is evidence that you can be successful by doing the right thing," he added.

What? helping to thieve money through ever lower interest rates is doing the right thing. It's just outright blagging.

Share this post


Link to post
Share on other sites

Record lending = record HPs

It will break my heart if these b4stards are bailed out again in 16/17? (The next Recession?)

Edited by Killer Bunny

Share this post


Link to post
Share on other sites

'Doing the right thing' apparently...

http://www.bbc.co.uk/news/business-34876966

Just playing by the UK rules?

If you were in charge there what would you do?

a) Lend like mad, more short term profits and bonuses, first sign of trouble step down and swan off into the sunset with your millions of swag

b.) Less lending, less short term profits and bonuses, less swag. Then have your lower profits ruined when you have to contribute to the compensation scheme for bust banks whose CEO's who did a)

Edited by Democorruptcy

Share this post


Link to post
Share on other sites

Record lending = record HPs

It will break my heart if these b4stards are bailed out again in 16/17? (The next Recession?)

+1

Share this post


Link to post
Share on other sites

+3 let the barstewards burn!!

The entitlement from these f#ckers is sickening.

I wonder how they're'getting' to senior tories to encourage a bailout, will it be all the leadership hopefuls - May, Boris, Osborne?

Share this post


Link to post
Share on other sites

Apparently Vickers was meant to stop it as Dodd-Frank in US but...yeah right.

We do know various C Banks have drawn up Bail IN rules a la Cyprus 2013. I'd be very happy to see that happen. Ultra deflationary. On verra.

Share this post


Link to post
Share on other sites

The op quote says increased mortgage lending but pressure on margins. The reality is NWide is mostly mortgage business so will do what it knows and chase business. I suspect other lenders will just choose to exit the sector and leave all (what little there is )business to NWide and Lloyds/ hbos group.

Edited by Ash4781

Share this post


Link to post
Share on other sites

how is the nationwide Unaffordability graph looking?

got to be in all out collapse level now.

I don't see the banks getting bailed this time. they can surely take the hit now.

I see a bank, or two, closing and not opening this time.

Share this post


Link to post
Share on other sites

Cant blame them. IIRC they were one of the (more) responsible lenders before 2007...only to see their rivals bailed out, and them expected to pay more into FSCS. Its not surprising they've gone headlong into throwing mortgages at anyone who'll take them.

Share this post


Link to post
Share on other sites

Cant blame them. IIRC they were one of the (more) responsible lenders before 2007...only to see their rivals bailed out, and them expected to pay more into FSCS. Its not surprising they've gone headlong into throwing mortgages at anyone who'll take them.

Ah

Horal mazard or something like that

Share this post


Link to post
Share on other sites

how is the nationwide Unaffordability graph looking?

got to be in all out collapse level now.

I don't see the banks getting bailed this time. they can surely take the hit now.

I see a bank, or two, closing and not opening this time.

I'm afraid to say that this time they will do it covertly. It will be done by clever accounting tricks and no one will kick up a fuss.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   29 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.