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thefinalbear

Breaking: Chelsea Bs Pulls Entire Range....

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Breaking News

Chelsea pulls entire product range

Chelsea Building Society is to pull its range of products from 5pm today.

The lender is to re-launch its range on Friday, after the number of applications it received doubled.

Vicki O'Connell, media relations manager at Chelsea Building Society, said: “We have seen a large spike in business and this decision was made to keep service levels up.”

The lender is expected to announce increases to its rates on Friday.

http://www.mortgagesolutions-online.com/pu...tml?page=746808

Looks like they'll be re-entering the market on Fri - with increased rates to try and quell demand...

Looks like we're running out of mortagage lenders........

Edited by thefinalbear

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Breaking News

Chelsea pulls entire product range

Chelsea Building Society is to pull its range of products from 5pm today.

The lender is to re-launch its range on Friday, after the number of applications it received doubled.

Vicki O'Connell, media relations manager at Chelsea Building Society, said: “We have seen a large spike in business and this decision was made to keep service levels up.”

The lender is expected to announce increases to its rates on Friday.

http://www.mortgagesolutions-online.com/pu...tml?page=746808

Looks like they'll be re-entering the market on Fri - with increased rates to try and quell demand...

Looks like we're running out of mortagage lenders........

Good, we have some money with them.

I like to see the companies I have cash in, panic early and up their IRs.

Means there is a better chance they won't go b00bies up.

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Where are all these extra applications coming from? People switching because their fixed rates have come to an end or FTBs who've been refused mortgages elsewhere, presumably.

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Exactly.........As lenders pull 100, 95 and 90% deals everyone races to the few that are left with those deals on the table.......usually causing them to pull the very deals that are attracting the business. They then up their rates to quell demand.

Edited by thefinalbear

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Where are all these extra applications coming from? People switching because their fixed rates have come to an end or FTBs who've been refused mortgages elsewhere, presumably.

Check this out : Small societies restrict lending

"All have been swamped by demand after bigger lenders found funds hard to come by on the financial markets."

If however it i snew applications, one has to wonder why borrowers refuse to read the signs. :huh:

Edited by Sledgehead

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Adrian Coles was on the other day talking about how smaller BSocs don't want to appear near the top of the league table. So now I guess they have to keep an eye out to make sure they don't hence pulling deals and making them more unattractive.

Could be a race to 15%.

Of course we will never see a crash if IRs don't reach 15%. :lol:

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I iwish they would report this on the tele news. To educate Joe Public. I still figure most of the Joe public's have little idea of what is going on :rolleyes:

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Where are all these extra applications coming from? People switching because their fixed rates have come to an end or FTBs who've been refused mortgages elsewhere, presumably.

Building Societies are more limited in where they can get funding from, hence less exposed to the securitised mortgage bond fallout, so still capable of offering mortgages where PLCs can no longer whilst licking their wounds.

I'm guessing that, simply, people are remortgaging to the Chelsea (and other building societies) because they simply cannot get the high LTVs they're transferring over with their current lender.

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I iwish they would report this on the tele news. To educate Joe Public. I still figure most of the Joe public's have little idea of what is going on :rolleyes:

I think it would be counterproductive. You'd have TV journalists wailing "something must be done!" and demanding that the government intervene to keep those mortgages coming.

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How many on here have cash in the Chelsea, i bet a few nerves went when reading the title of this thread? Announcements after closing time?

http://www.thechelsea.co.uk/forms/agm-001.pdf

Thefinalbear, should be ashamed of yourself, things like this starts runs? I would say The Chelsea are pretty sound.

http://www.thechelsea.co.uk/media/media_pr...e_20080206.html

Mortgage lending

2007 has been a year of contrasts. Housing market activity was strong during the first half of the year, with Chelsea

achieving above market share levels of lending. However, when bank base rate rose to 5.75% in July, the highest rate

since February 2001, consumer confidence began to wane. This change in sentiment inevitably found its way to the

housing market with demand easing in the third quarter, and house prices falling in the final quarter.

Chelsea’s gross new lending amounted to £3.1 billion, 119% of proportional building societies’ market share. Net

lending of £1.4 billion was marginally down on 2006, but represented 144% of proportional building societies’ market

share.

As in previous years, much effort was focused on retaining borrowers coming to the end of a fixed or discount period.

In 2007 more than £1.2 billion of existing mortgages were transferred to follow-on mortgage products.

Despite a reduction in bank base rate in the final quarter of 2007, and the prospect of further rate cuts in 2008, many

borrowers continue to favour fixed rates, preferring the comfort of fixed repayments over the possibility of benefiting

from lower interest rates.

Buy to let lending increased by 64% to £1.1 billion reflecting the continuing investment appeal of the UK property

market. Undoubtedly rising interest rates and tighter credit criteria did act to cool the interest of the buy to let investor

in the second half of 2007. Nevertheless, total buy to let mortgage balances rose by 78% to £2.2 billion, and now

represent 22.4% of total mortgage assets. The buy to let mortgage portfolio continues to generate a higher margin

than the owner-occupier mortgage book but bears a remarkably low level of payment arrears, not only vindicating our significant presence in this sector of the mortgage market, but also the prudence of our lending policy.

Lending to first time buyers fell to £0.5 billion, reflecting continuing affordability problems. The potential of reduced

interest rates and stabilisation of house prices will undoubtedly ease the difficulties faced by the first time buyer.

Chelsea continues to offer the Prospect range of mortgages for borrowers who have had minor credit problems in the

past. Lending to such borrowers amounted to £0.2 billion and represented 7.2% of total lending. Total Prospect

mortgages have now reached £0.6 billion, and represent 5.7% of total mortgage assets.

In 2007, we commenced lending on the security of commercial premises. By the end of the year we had completed

£10.8 million of commercial loans, less than 0.15% of total mortgage lending and reflective of our initial caution in

what is a new market for Chelsea. This caution will be maintained throughout 2008, reflecting our measured approach

to a segment of the market that is particularly susceptible to lower investor confidence levels.

Edited by Panda

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I would prefer to look at the cds prices, but there does tend to be a correlation. :)

The govt are going to socialise these losses, so as long as you stay within the 35k, and don't have any borrowings with them, then they will be nationalised.

As you mention, though, that probably doesn't extend to deposits with foreign banks.

We have some Icesave money, but are in the process of taking most of it out, to put it in Northern Rock, ironically.

I don't think any of the UK banks will fail and lose depositors money. They will all get some bailout/organised buyout. The depositors seem to be the only people the BOE will actually back.

Those with money in Icelandic banks however are skating on very, very thin ice.

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Now, this is what is called 'credit crunch', 'credit squeeze', 'credit contraction'....very 'nice' indeedy for those with their fingers crossed in the hope of a spring bounce in the housing market :rolleyes:

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Those with money in Icelandic banks however are skating on very, very thin ice.

nicely put... :lol:

I agree though.........if any bank is allowed to go to the wall it will be a foreign one. Northern Rock had its HQ in Newcastle.......could hardly let that go under.......but Iceland is a different story.

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I don't think any of the UK banks will fail and lose depositors money. They will all get some bailout/organised buyout. The depositors seem to be the only people the BOE will actually back.

Those with money in Icelandic banks however are skating on very, very thin ice.

don't disagree with that, although the Icelandic govt could do the same.

Not relying on it, though obviously. Whereas I think we can rely on our govt bailing out our banks.

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Pulling of lending = erm... deflation (ducks as goldbugs roar and start throwing chairs)

Not really..... this is deflation........but I'm also a goldbug.....and I think that gold will rise for different reasons. Esentially as a safe haven as assets (like mortagge backed bonds) are being destroyed.......and the fact that the massive short position will have to be unwound sometime.

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If the Crock had pulled its product range 12 months earlier, and upped rates, it might not be in the mess it is in now?

So could be a good business decision, one many mutuals will hopefully follow?

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Isn't there another strategy at play here.

Lenders are wanting to get rid of current customers as well - during this time of massive resetting..

"Sorry we have no mortgages at the moment" - it's SVR or please find somebody else to accept your unaffordable mortgage taken out on an over-inflated house price.

This is certainly the policy of NR so why not everyone else?

Ultimately SVR will become the lowest mortgage rate.

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Yup.....and this will do more to contribute to the crash than anything else. The Halifax SVR is currently 7.25%.

For a lot of customers this will be a 50% increase in repayments (or more).

Edited by thefinalbear

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Guest grumpy-old-man
Adrian Coles was on the other day talking about how smaller BSocs don't want to appear near the top of the league table. So now I guess they have to keep an eye out to make sure they don't hence pulling deals and making them more unattractive.

Could be a race to 15%.

Of course we will never see a crash if IRs don't reach 15%. :lol:

:D

the amount of times I had discussions with people on here in 2007 telling them that 6-7% is the new 15%. ;)

The housing market is crashing & we haven't even started the bad run of news in the UK yet, just wait a few months.....

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Indeed. The Bank Of England can lower the base rate to 0% if it likes. But faced with wave after wave of defaults........banks are going to continue to put up IR's to borrowers like there is no tomorrow. There is bugger all the BOE can do about the risk premium.

Edited by thefinalbear

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