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Ash4781

Building Society Only Lending Local

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http://www.expressandstar.com/2008/03/20/b...-lending-local/

Building society only lending local

Black Country building society minnow Tipton & Coseley today announced it will only lend to local people.

The move follows the society being inundated with calls from would-be borrowers across the UK.

It is seen as yet another result of the credit crunch, ratcheting up the pressure on lenders who are struggling to secure funding after wholesale money markets effectively dried up, forcing lenders to hike their rates or even stop lending altogether.

Tipton & Coseley, which has recently featured in best buy tables, is one of a decreasing number of lenders still prepared to advance 95 per cent of a property’s value to first-time buyers.

Chief executive Chris Martin said: “We were getting a lot of calls from around the country and we wanted to make sure that people locally can get them.

“Lenders are withdrawing rates and increasing them and limiting the percentage they will lend on. We are a bit loth to do that and it is to make sure we don’t have to, that we are restricting borrowing to people in our area.”

The society has also pulled out of the intermediary market, selling its mortgages through third parties.

The move is seen as yet another result of the credit crunch, which has seen the Bath Building Society and Earl Shilton Building Society withdraw all of their home loans, except their standard variable rates.

Demand up. Producer can't match supply so prices rise or there isn't enough to go around.

Edited by Ash4781

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Or Building Society which has a wider remit than maximise profit for short-term shareholders sees no reason to bail-out globalised market stupidity.

Is Nationwide the only nationwide building society ?

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Is Nationwide the only nationwide building society ?

Most of the rest de-mutualised in the late 1980's, and were either taken-over or are the basket cases everyone knows and loves e.g. B&B A&L Northern Crock etc.

http://www.bsa.org.uk/

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Britannia, Yorkshire and Leeds BSs are pretty national!

They've got a good geographic spread but tend to mostly be in big cities. Indeed if you recall, the building societies set up the Link group to offer some competition to the banks' cash machine coverage - the rationale was that between them they could offer a similar service to their members.

Unfortunately it was too successful and the banks recognising a good thing muscled-in and tried to take it over and make it fee-paying for any cash withdrawal.

Edited by happy?

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http://www.expressandstar.com/2008/03/20/b...-lending-local/

Demand up. Producer can't match supply so prices rise or there isn't enough to go around.

Tipton & Coseley have withdrawn all mortgages through intermediaries as well.

With most of their executive management retiring in the next few years & the fiasco at last year's AGM where no questions could be asked in public due to the publicity with Executive's pay packages they're not having too good a time!!!

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  • 295 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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