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Voice of Doom

Yikes! Mortgage lending slumps by a third

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That's a slightly odd one since, as one of the commenters there has picked up on, they are quoting a third reduction in NW's net lending and a fall in market share of nearly 50% - which would actually imply that the market overall has increased lending - which wouldn't tally with any other figures that have come out recently. Who knows what they are actually saying.

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Well ...

My takes is that the NW mortgage book have been writing high risk business til the PRA and MMR stopped the lunatic risk for oth BTLers and residential.

The problem the NW is not that their lending has dropped 1/3 - they did step in and take over the lunatic business of Northern Rock and the like ...

NW problem is they are stuck with a bunch of much riskier loans, written from 2008-2016sh that will probably blow up in their face.

 

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4 hours ago, Voice of Doom said:

Great first post.Welcome.

3 hours ago, mattyboy1973 said:

That's a slightly odd one since, as one of the commenters there has picked up on, they are quoting a third reduction in NW's net lending and a fall in market share of nearly 50% - which would actually imply that the market overall has increased lending - which wouldn't tally with any other figures that have come out recently. Who knows what they are actually saying.

Lot of it could be down to transactions dropping.LCP  Acadata reporting 21% drop QoQ.New mortgage market is shrinking.

2 hours ago, spyguy said:

Well ...

My takes is that the NW mortgage book have been writing high risk business til the PRA and MMR stopped the lunatic risk for oth BTLers and residential.

The problem the NW is not that their lending has dropped 1/3 - they did step in and take over the lunatic business of Northern Rock and the like ...

NW problem is they are stuck with a bunch of much riskier loans, written from 2008-2016sh that will probably blow up in their face.

 

Speaking to a surveyor friend who works for an independent,all the worst loans he sees at the marginal end of the market have been predominantly Nationwide.Not surprised that they've pulled out now the cheap money has gone.Wouldn't want to be coming off a NW 2 year fixed anytime soon.

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14 minutes ago, Sancho Panza said:

Great first post.Welcome.

Lot of it could be down to transactions dropping.LCP  Acadata reporting 21% drop QoQ.New mortgage market is shrinking.

Speaking to a surveyor friend who works for an independent,all the worst loans he sees at the marginal end of the market have been predominantly Nationwide.Not surprised that they've pulled out now the cheap money has gone.Wouldn't want to be coming off a NW 2 year fixed anytime soon.

Thats quite a change.

Not so long ago, NW were very choosy about who to lend to.

Bit like HSBC are at the mo.

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  • 301 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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