Nationwide Hit Over Mortgages

[Realistbear]

http://www.ananova.com/business/story/sm_1847587.html?menu=

Nationwide Hit Over Mortgages

Nationwide saw a 15% improvement in profits last year which reached £539.4m, up from £467.7m on the previous year.

However,

lending on mortgages slumped 42% as the world's biggest building society scaled back

lending in fear of a tough housing market.

Nationwide, Britain's biggest customer-owned lender and the fourth biggest mortgage provider, said its net mortgage lending fell to £6.3bn from £10.9bn a year earlier.

Despite their ramping, the truth seems to be that Nationwide are a little more cautious about the housing bubble that they have led the sheeple to believe?

[Blue Peter]

http://www.ananova.com/business/story/sm_1847587.html?menu=

Nationwide Hit Over Mortgages

However, lending on mortgages slumped 42% as the world's biggest building society scaled back lending in fear of a tough housing market.

Nationwide, Britain's biggest customer-owned lender and the fourth biggest mortgage provider, said its net mortgage lending fell to £6.3bn from £10.9bn a year earlier.[/indent]

Despite their ramping, the truth seems to be that Nationwide are a little more cautious about the housing bubble that they have led the sheeple to believe?

So, with whom are all these extra mortgage approvals, then?

Peter.

[Take me to the cleaners]

"We've had the soft landing and the economy has stayed benign so we'll be wanting to push back to par share."

He said Nationwide expects UK house price inflation this year to be similar to 2005 at between 3 and 5 percent, mainly due to a shortage of houses.

I find it increasingly hard to believe that the people who spout this sort of nonsense actually believe it.

[get real]

I find it increasingly hard to believe that the people who spout this sort of nonsense actually believe it.

I expect the appraisals and bonuses are due at Nationwide, wouldn't do to jeopardise one's standing with the bosses at this point.

[since the beginning]

42% I thought that was a mis-print. Something very wierd going on here - mortgage approvals as a whole massively up but one of the main players scaling back by 50%.

There must be alot of people with some more dubious lenders!

[dnd]

I find it increasingly hard to believe that the people who spout this sort of nonsense actually believe it.

These peoples only loyalties are to their shareholders - what they 'believe' as individuals is irrelevant

[Realistbear]

42% I thought that was a mis-print. Something very wierd going on here - mortgage approvals as a whole massively up but one of the main players scaling back by 50%.

There must be alot of people with some more dubious lenders!

Yes, with so much MEW out there and stretched affordability the secondary loan market (Shylocks) have probably been doing well. Hence all the complaints to the FSA etc. It seems that most lenders would steer away from excessive risk where earnings multiples strayed too far from a maximum of 4 X`salary.

[kingofnowhere]

So, with whom are all these extra mortgage approvals, then?

Peter.

They have been losing business to the banks which is why they have recently (April) increased the multples they would lend , for Single purchaser or FTB by 23% and a joint by 5%.

Also in April cert UCB (Owned by Natiowide) as increased the maximum lending multiples on its buy-to-let mortgages. (It has a strange formula of 6X rental and a multple on the owners income)

[King Of Fools]

However, lending on mortgages slumped 42% as the world's biggest building society scaled back lending in fear of a tough housing market.

Nationwide, Britain's biggest customer-owned lender and the fourth biggest mortgage provider, said its net mortgage lending fell to £6.3bn from £10.9bn a year earlier.

Its share of new mortgage business fell to 6.7% from its traditional 9% share of the market, although it said it planned to return to that level this year.

"We were concerned this time last year about what would happen in the housing market so we made a clear decision that we wanted to concentrate on quality," Nationwide's Stuart Bernau said.

Edited May 18, 2006 by King Of Fools

[BuyingBear]

However, lending on mortgages slumped 42% as the world's biggest building society scaled back lending in fear of a tough housing market.

Nationwide, Britain's biggest customer-owned lender and the fourth biggest mortgage provider, said its net mortgage lending fell to £6.3bn from £10.9bn a year earlier.

Its share of new mortgage business fell to 6.7% from its traditional 9% share of the market, although it said it planned to return to that level this year.

"We were concerned this time last year about what would happen in the housing market so we made a clear decision that we wanted to concentrate on quality," Nationwide's Stuart Bernau said.

So why produce a set of crooked stats that state the exact opposite?

[nimmmm]

In fairness to Nationwide, they are fair less bullish than Halifax in relation to HPI. The fact that they say that they concentrated on quality is surely indicative that they feel the market is peaking.

[BuyingBear]

In fairness to Nationwide, they are fair less bullish than Halifax in relation to HPI. The fact that they say that they concentrated on quality is surely indicative that they feel the market is peaking.

Obviously there is one set of releases and disclosures for the shareholders and analysts and a whole other set of news releases for the popular press, with the all the important information highlighted and spoonfed for the frontpage of the Express or such like.

[New Bear]

These peoples only loyalties are to their shareholders - what they 'believe' as individuals is irrelevant

Nationwide doesn't have shareholders. It's a mutual organisation owned by its members.

Although it has undergone a heavy degree of "managerial capture" (ie it tends to be run more for the benefit of its managers than its members) IMO its mutual character gives it a generally more cautious trading style.

[Kid_a]

If they think the housing market is going to crash, why are they now trying to gain a higher market share by increasing lending multiples? Just stupidity?

[Shamus]

If they think the housing market is going to crash, why are they now trying to gain a higher market share by increasing lending multiples? Just stupidity?

They believe the hype of their own making and other VI's... in that they think house prices are fair value and should actually go up more!!

[BuyingBear]

If they think the housing market is going to crash, why are they now trying to gain a higher market share by increasing lending multiples? Just stupidity?

They're probably very active in credit derivatives to offset risk.

[music man]

Wonderful find there RB.

With sellers getting impatient and buyers simply voting with the abstainance these certainly are interesting times.

This has been one great week for the site.

Keep up the good work RB. Thanks buddy

[backtoparents]

If they think the housing market is going to crash, why are they now trying to gain a higher market share by increasing lending multiples? Just stupidity?

Could it depend what the lending is secured on?

btp