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Sancho Panza

Nationwide building society hit by 50% collapse in buy-to-let lending

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Don't remember this being posted.

 

Property Industry Eye 14/8/17

'Nationwide’s mortgage lending plunged in the April to June quarter as buy-to-let borrowers stayed away from the market after the phasing out of tax relief on mortgage interest was introduced at the start of April.

Last year, landlords were hit by a 3% hike in Stamp Duty if they purchased more properties.

The building society said that net mortgage lending collapsed by 31% between April 5 and June 30 this year, from £3.5bn to £2.4bn.

Buy-to-let lending halved to £800m.

A spokesperson for Nationwide said the lender expected buy-to-let lending to remain broadly flat.

The fall meant that Nationwide, the UK’s second largest buy-to-let lender behind Lloyds, saw a 20% fall in profits, with its share of the mortgage market slipping from 15% to 13%.'

 

Edited by Sancho Panza

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43 minutes ago, Sancho Panza said:

The housing market just has to be getting to the point where it has nothing host off

 

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Nationwide, the UK’s second largest buy-to-let lender behind Lloyds, saw a 20% fall in profits, 

Next recession, if accompanied by just a moderate correction in house prices, they're toast. Good riddance as well. Such a vile company pretending to be something it isn't. 

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Not sure I follow..btl lending halves April to June but their spokeperson says they expect btl lending to be flat...odd prediction given trend? Or do the talk utter s h! t? What iceberg?

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I wouldn't care, but this was founded as the complete opposite of what it's become. Those adverts too are just too much when you know about their role in creating this shite situation.

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My hse deposit is in nationwide split between 2 savings accounts in my kids' names. Earns 2.25% so I'm reluctant to withdraw it .... hmmm, dilemma!

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I noticed nationwide are really pumping for more current accounts.

they won't be bailed out when the inevitable happens, it will be a bail in. 

they are a basket case. they are BTL, they will die with it. 

1. Demand for BTL plummets

2. Demand for BTL stops

3. Share price crashes 

4. Housing market turns

5. People stop paying BTL mortgages 

6. Gov tells them where to go

7. Accounts frozen due to technical error one weekend

8. Cash withdrawals limited to £40 a day.

9. All deposits converted to worthless nationwide shares 

10. All mortgages get aggressively chased for payment 

you would be a moron to be anywhere near nationwide over the next 12 months.

 

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" saw a 20% fall in profits "

 

Profits? Didn't think mutuals had profits. They have surpluses, which should be distribiuted amongst it's members in the form of decent interest rates.

It really needs to decide what it is, a bank or a building society?

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6 hours ago, Grab_Some_Popcorn said:

My hse deposit is in nationwide split between 2 savings accounts in my kids' names. Earns 2.25% so I'm reluctant to withdraw it .... hmmm, dilemma!

A college friend of mine discovered his parents had done something similar. He wrote to the BS requesting a new passbook, emptied the account and spent the lot.

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29 minutes ago, Horridbloke said:

A college friend of mine discovered his parents had done something similar. He wrote to the BS requesting a new passbook, emptied the account and spent the lot.

That may prove to have been a bad move, come inheritance time. 

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30 minutes ago, Horridbloke said:

A college friend of mine discovered his parents had done something similar. He wrote to the BS requesting a new passbook, emptied the account and spent the lot.

They're 4 and 6... If I'm still priced out when they go to college they can have my house deposit for their own place.

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On 18/08/2017 at 10:31 PM, Wayward said:

Not sure I follow..btl lending halves April to June but their spokeperson says they expect btl lending to be flat...odd prediction given trend? Or do the talk utter s h! t? What iceberg?

What they means is NEW BTL lending halves, at least I don't think 50% of landlords have sold up in the last 3 months, a proper stampede for the exit won't start until the first tax bills start dropping onto doormats.

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46 minutes ago, Habeas Domus said:

What they means is NEW BTL lending halves, at least I don't think 50% of landlords have sold up in the last 3 months, a proper stampede for the exit won't start until the first tax bills start dropping onto doormats.

Precisely; the first tiniest wobble in BTL and bam! 20% off their profits. Wait and see what happens during the 'Great Awakening' next April. 

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2 minutes ago, Giraffe said:

Precisely; the first tiniest wobble in BTL and bam! 20% off their profits. Wait and see what happens during the 'Great Awakening' next April. 

I've got my finger on the button to empty my kids savings accounts at first sign of trouble. Wonder how many people will do the same. Could be northern rock all over again.

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3 minutes ago, Grab_Some_Popcorn said:

I've got my finger on the button to empty my kids savings accounts at first sign of trouble. Wonder how many people will do the same. Could be northern rock all over again.

.....as I understand it, once a child reaches seven it will be harder for a parent to move it.;)

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1 hour ago, Grab_Some_Popcorn said:

I've got my finger on the button to empty my kids savings accounts at first sign of trouble. Wonder how many people will do the same. Could be northern rock all over again.

i would move sooner rather than later, they will stop withdrawals as soon as they start to tick up above trend given their situation. They look like they are going to go bust to me. i wouldnt risk it for the sake of a few %, there is a reason they want to attract people into their accounts, its for bail-in time. 

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21 minutes ago, jiltedjen said:

i would move sooner rather than later, they will stop withdrawals as soon as they start to tick up above trend given their situation. They look like they are going to go bust to me. i wouldnt risk it for the sake of a few %, there is a reason they want to attract people into their accounts, its for bail-in time. 

Few things would make me happier than to see the Nationwide collapse, however I cannot see a situation wherein they collapse and retail deposits under the FSCS limit (£85,000 per person per firm as of 1 Januaury 2017, link) are not protected.

If retail depositors get spooked then the Bank of England will provide a line of cheap credit, so no problem there. The institutional investors are locked in because of the nature of their investment (so-called CoCos, link). The equity investors (the membership) are totally locked in, just as they would be if they were shareholders.

The 2009 Banking Act would allow a coordinated move to run-off in the event of an insolvency so retail depositors wouldn't get cut off from their money as the lender plunged into a chaotic bankruptcy.

This is not 2007.

People should pull money out of Nationwide because their rates are awful and they just lend your money on to some BTL herbert via their Mortgage Works subsidiary (the fact that they have a BTL subsidiary called The Mortgage Works is reason enough to pull your money out IMO). However, for deposits under the FSCS limit your money is as safe with Nationwide as money can be anywhere and pulling it out for fear of losing it is more than a little OTT.

Edited by Bland Unsight

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it has been down that the 85k limit does not apply elsewhere in europe when it was supposed to, its a confidence trick. Risk it if your happy. 

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2 minutes ago, jiltedjen said:

it has been down that the 85k limit does not apply elsewhere in europe when it was supposed to, its a confidence trick. Risk it if your happy. 

Nice line in a book I read a while back, words to the effect of "You can't avoid risk, but you do get some say in the risks that you take". Of course there are risks that rules get altered when things get really wild, but I am looking at the problem of where to put your money. Pulling money out of the Nationwide on the basis of credit risk is a reasonable thing to do provided that you have somewhere to put it where the credit risk is lower and I am not aware of anything you can do with bank credit that involves less risk than leaving it in a licensed bank (which is part of why the return on your cash is negative in real terms).

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a lot of the banks are not particularly stable, but nationwide is the worst of a bad bunch. Its a time bomb, and the timer is set for somewhere between 12-18 months, they are BTL, they will go down with it. 

plus i personally would not have my money near a bank who so heavily acted against my own interests, then adds heaps of salt to the wounds with their horrible vomity adverts. 

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1 minute ago, jiltedjen said:

a lot of the banks are not particularly stable, but nationwide is the worst of a bad bunch. Its a time bomb, and the timer is set for somewhere between 12-18 months, they are BTL, they will go down with it. 

plus i personally would not have my money near a bank who so heavily acted against my own interests, then adds heaps of salt to the wounds with their horrible vomity adverts. 

I'm starting to form the impression that you aren't keen on Nationwide :D

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  • 220 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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