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The Masked Tulip

Locals-only Lending As The Credit Crunch Hits

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DEMAND for loans as a result of the credit crunch has forced a leading Welsh building society into restricting its mortgage lending.

The Monmouthshire Building Society is one of a number of building societies to have taken action after being inundated with business.

The mutual is one of five financial institutions that will now lend only to people living in its local area.

Roger Thomas, chairman of Cardiff-based Cooke & Arkwright chartered surveyors, said he was unsurprised that smaller lenders had found themselves having to turn away custom.

“The credit crunch is starting to bite,” he said. “People are going to places such as Monmouthshire because they see those smaller lenders having a smaller chain of command which means they get a quicker decision.

Full article:

http://icwales.icnetwork.co.uk/news/wales-...91466-20679112/

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Surely this is as it should be? They will have local expertise about the job market and earnings potential of their borrowers. If more financial institutions had been doing this, perhaps we wouldn't be in quite the mess we are!

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Their 'local area' is basically the border West to Swansea and up to mid-Wales. That is a large area with a huge population. This article must surely mean that they are getting mortgage applications from outside this large area then I assume.

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Inundated!!!!! by who??? A lot of building socities and banks are saying this now. Did they have fantastic rates or something? Are lots of people buying houses? This reason must be a lie, they just don't want to lend.

Not quite a lie. I think they are inundated AND they haven't the funds to lend.

Inundated because as more providers pull out of the market, business increases for those still accepting applications.

But surely in normal times any business would be delighted to be "inundated"? All this crap about needing to maintain customer service levels is a way of avoiding admitting that they don't have the money to lend.

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Inundated!!!!! by who??? A lot of building socities and banks are saying this now. Did they have fantastic rates or something? Are lots of people buying houses? This reason must be a lie, they just don't want to lend.

No, it's more that as the bigger lenders withdraw offers and raise rates, the smaller lenders suddenly find themselves at the top of the 'Best Buy' tables, and suddenly every man and his dog it applying for their mortgages; they just don't have access to sufficient funds to grant that many mortgages.

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Not quite a lie. I think they are inundated AND they haven't the funds to lend.

Inundated because as more providers pull out of the market, business increases for those still accepting applications.

But surely in normal times any business would be delighted to be "inundated"? All this crap about needing to maintain customer service levels is a way of avoiding admitting that they don't have the money to lend.

makes sense.

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Not quite a lie. I think they are inundated AND they haven't the funds to lend.

Inundated because as more providers pull out of the market, business increases for those still accepting applications.

But surely in normal times any business would be delighted to be "inundated"? All this crap about needing to maintain customer service levels is a way of avoiding admitting that they don't have the money to lend.

Agree as well .

I mean , were there Northern Rock type queues forming outside their branches for mortgages ........no of course not :rolleyes:

Edited by grey shark

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Yes I'm sure the Derbyshire Building Society will return my cheque for the opening of a savings account for the same reason, that I am not local enough.

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Inundated!!!!! by who??? A lot of building socities and banks are saying this now. Did they have fantastic rates or something? Are lots of people buying houses? This reason must be a lie, they just don't want to lend.

By people needing to REmortgage not FTBs!

If your fixed is coming to an end then you'd better get hunting.

I'm about to start a thread about something similar..

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By people needing to REmortgage not FTBs!

If your fixed is coming to an end then you'd better get hunting.

I'm about to start a thread about something similar..

Someone said they were looking at rates 6 months in advance - and you can prebook yourself a better deal...?

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Yes I'm sure the Derbyshire Building Society will return my cheque for the opening of a savings account for the same reason, that I am not local enough.

The building societies were doing this when the de-mutualisations were taking place.

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  • 293 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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