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Building Society Risks

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Shortly I intend to move my capital and spread it around a little bit.

I'm going for a mixture of banks and building societies. What are peoples impressions of the WEST BROMWICH BS ? Are they exposed to any greater extent than others ? I know BB or A+L are not recommended, but Bromwich's 6.3% gross is tempting.

Any insights appreciated.

Edited by Rover

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I don't think you have anything to worry about as far as the West Bromwich Building Society is concerned - mutuals are a lot safer as they have more savers and can't take the same risks as banks like Northern Rock! Plus there is always the chance they could be taken over leading to a windfall (as with Portman and Nationwide)

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Shortly I intend to move my capital and spread it around a little bit.

I'm going for a mixture of banks and building societies. What are peoples impressions of the WEST BROMWICH BS ? Are they exposed to any greater extent than others ? I know BB or A+L are not recommended, but Bromwich's 6.3% gross is tempting.

Any insights appreciated.

I am sorry to disagree with my learned friend but Mutuals are not really any safer than quoted Banks. And there are four elements of WBBS which should concern you: 1. Its lending is largely in the West Midlands and vulnerable to a false spillover HPI from the South. 2. It has aggressively promoted its "impaired credit" mortgage - sub-sub prime if you ask me. 3. It is heavily into BTL in the West Midlands, an area relatively untested without central government support in the form of Housing Benefit. 4. It promotes muslim mortgages - doubtless priding itself on its "innovative financing" usually by re-defining "interest" (which is forbidden) as a "service charge" (which isn't). When some muslim borrowers ranging from the scrupulously honest to the downright shady convince themselves in a boom that "interest" is really a "service charge" and embark on the road to riches, all is well; when, in a bust, those same borrowers, rather conveniently re-define a "service charge" as "interest", it gets interesting - because they will simply walk away.

Furthermore, Mutuals have been just as energetic in setting up "specialist lending units" as Banks. The Bank HBOS is particularly vulnerable to its follies with BM Solutions, the Mortgage Business, and its High-Value specilist lending unit. Bradford & Bingley has Mortgage Express and a sizeable chunk of Kensington Mortgage's loan book. Skipton BS has Amber dodgy loans, Britannia has Platform Lending, Portman had Mortgage Works, etc etc. In fact the smaller Mutuals have chased sub-prime just as fervently as the Banks.They are all following the Northern Rock expansion into the lower market model. The worrying thing about WBBS is that they don't have a specialist unit like the others .... in fact they parceled everything up and securitised it....but have had to withdraw from the market...so they are, in fact, quite vulnerable. They are more like Northern Rock than the others although the others have stuffed the liabilities into other companies.

And let us not forget the morons at Investors Chronicle, once a sensible and trustworthy magazine, that gave 3 BUY recommendations this summer to Northern Rock's shares, a further recommendation to the Permanent Interest Bearing Shares, etc.

So there is no-one you can trust except....

The Man with the Mojo who do the Voodoo

and he

Togo Joe

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I am sorry to disagree with my learned friend but Mutuals are not really any safer than quoted Banks. And there are four elements of WBBS which should concern you: 1. Its lending is largely in the West Midlands and vulnerable to a false spillover HPI from the South. 2. It has aggressively promoted its "impaired credit" mortgage - sub-sub prime if you ask me. 3. It is heavily into BTL in the West Midlands, an area relatively untested without central government support in the form of Housing Benefit. 4. It promotes muslim mortgages - doubtless priding itself on its "innovative financing" usually by re-defining "interest" (which is forbidden) as a "service charge" (which isn't). When some muslim borrowers ranging from the scrupulously honest to the downright shady convince themselves in a boom that "interest" is really a "service charge" and embark on the road to riches, all is well; when, in a bust, those same borrowers, rather conveniently re-define a "service charge" as "interest", it gets interesting - because they will simply walk away.

Furthermore, Mutuals have been just as energetic in setting up "specialist lending units" as Banks. The Bank HBOS is particularly vulnerable to its follies with BM Solutions, the Mortgage Business, and its High-Value specilist lending unit. Bradford & Bingley has Mortgage Express and a sizeable chunk of Kensington Mortgage's loan book. Skipton BS has Amber dodgy loans, Britannia has Platform Lending, Portman had Mortgage Works, etc etc. In fact the smaller Mutuals have chased sub-prime just as fervently as the Banks.They are all following the Northern Rock expansion into the lower market model. The worrying thing about WBBS is that they don't have a specialist unit like the others .... in fact they parceled everything up and securitised it....but have had to withdraw from the market...so they are, in fact, quite vulnerable. They are more like Northern Rock than the others although the others have stuffed the liabilities into other companies.

And let us not forget the morons at Investors Chronicle, once a sensible and trustworthy magazine, that gave 3 BUY recommendations this summer to Northern Rock's shares, a further recommendation to the Permanent Interest Bearing Shares, etc.

So there is no-one you can trust except....

The Man with the Mojo who do the Voodoo

and he

Togo Joe

Anyone who does business with people who speak with a brummie acent is asking for trouble :lol::lol::lol:

Edited by The Ginger Winger

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Guest Shedfish
So there is no-one you can trust except....

The Man with the Mojo who do the Voodoo

and he

Togo Joe

:lol::lol::lol::lol:

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Shortly I intend to move my capital and spread it around a little bit.

I'm going for a mixture of banks and building societies. What are peoples impressions of the WEST BROMWICH BS ? Are they exposed to any greater extent than others ? I know BB or A+L are not recommended, but Bromwich's 6.3% gross is tempting.

Any insights appreciated.

Interestingly, BBC 24 News said this morning that both B&B and A&L are benefiting from NR's problems with people taking money from NR to deposit with them.

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Interestingly, BBC 24 News said this morning that both B&B and A&L are benefiting from NR's problems with people taking money from NR to deposit with them.

Such an obvious attempt to reassure people that B&B and A&L are safe. Why name those two in particular instead of just saying that other banks have benefited from getting NR deposits? The BBC must have been 'encouraged' to say that. <_< Not that I think that it's particularly sinister.

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I dont really know if I am right but I am currently thinking about moving my money from Cahoot to the big high street banks for perceived safety. The sum amounts to around £125k

Lloyds & Natwest seem more sensible than the prospectively over-exposed Barclays and HSBC but thats just because I havent heard much about Lloyds & Natwest exposure.

I would take a haircut on savings rates but I dont like the idea of online banking suddenly :blink:

I will mull it over with any new informtion.

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Such an obvious attempt to reassure people that B&B and A&L are safe. Why name those two in particular instead of just saying that other banks have benefited from getting NR deposits? The BBC must have been 'encouraged' to say that. <_< Not that I think that it's particularly sinister.

Maybe. Maybe not. It could just be true. Not everything is a conspiracy. :unsure:

Your average joe just thinks NR has a problem. Both B&B and A&L habve good High Streets deals at the moment.

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Shortly I intend to move my capital and spread it around a little bit.

I'm going for a mixture of banks and building societies. What are peoples impressions of the WEST BROMWICH BS ? Are they exposed to any greater extent than others ? I know BB or A+L are not recommended, but Bromwich's 6.3% gross is tempting.

Any insights appreciated.

Looking at their latest set of accounts:

http://www.westbrom.co.uk/westbrom/downloa...s.pdf?PDF_ID=21

It doesn't appear that they've been raising much if any money by methods other than customer deposits so, at least in the context of the current credit market issues, they look fairly safe. The building societies in general survived the last housing downturn better than banks too.

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West Brom are at it like the rest of them ..............

http://www.ccjremortgages.co.uk/west-bromw...KWID=1561297031

West Bromwich Building Society is the ninth largest in the UK with assets of over £5 billion, 800 employees and 50 branches.

Compare all types of good or poor credit remortgages including Offset, Flexible, Self-Certification, Tracker, Equity Release and Buy-to-Let. [/b]

We know you are looking for speed, ease, trust, experience and suitability, so please complete our quick, no-obligation form below to compare West Bromwich Building Society remortgages with several other well known lenders.

9th largest building society makes them squirt size as for 5 billion in assets , i usually have 5 bill in my back pocket ;)

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A lot of 1 year savings bonds with high rates have appeared over the past week by various banks/building societies (some paying around 7%). While these seem tempting, I'm taking the view that these institutions need more cash deposits to shore up their liquidity, because of the interbank lending problems. Maybe, it's worth looking at the lowest paying accounts for a short amount of time? or NS&I.

In the times yesterday was a table showing all the major banks and their levels of deposits and loans and reliance on money markets. I can't find it on their website, however lloydststb & natwest appeared to have the lowest ratio about 5%, whereas bradford & Bingley wasn't much behind northern rock.

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A lot of 1 year savings bonds with high rates have appeared over the past week by various banks/building societies (some paying around 7%). While these seem tempting, I'm taking the view that these institutions need more cash deposits to shore up their liquidity, because of the interbank lending problems. Maybe, it's worth looking at the lowest paying accounts for a short amount of time? or NS&I.

In the times yesterday was a table showing all the major banks and their levels of deposits and loans and reliance on money markets. I can't find it on their website, however lloydststb & natwest appeared to have the lowest ratio about 5%, whereas bradford & Bingley wasn't much behind northern rock.

Would be interested if you could find that (re: my post above where NatWest & Lloyds could be a safe haven albeit with lower rates)

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