Jump to content
House Price Crash Forum
Sign in to follow this  
eric pebble

Nationwide Shuts Door On Mortgage Hunters: " - Turning Away

Recommended Posts

Well surprise surprise...

Nationwide shuts door on mortgage hunters

Nationwide, the UK's largest mortgage lender after Halifax, said today that it wanted to turn away business to take greater control over the amount it lends.

http://business.timesonline.co.uk/tol/busi...icle3632616.ece

Is it just me - -- or are these Lenders JUST starting to realize that PEOPLE CANNOT AFFORD

1- HOUSE PRICES

2- MORTGAGES ON THEM?

I mean --- HAVE THEY TAKEN THIS LONG TO WORK OUT THAT THE WHOLE THING WAS BOUND TO FALL OVER A CLIFF??

Edited by eric pebble

Share this post


Link to post
Share on other sites

The whole crisis is snowballing. I guess they were trying to slow the huge snowball down for as long as possible, but in the end, you can't fight gravity.

Share this post


Link to post
Share on other sites

This is frustrating. I am expecting to want a mortgage in (about) a year's time... and I want to establish a savings relationship with the most credible lenders (to minimise their perception of risk in lending to me.)

Now mortgage lenders are pulling the rug, I think it is becoming more important than ever before to establish a situation under which I'm not disadvantaged relative to existing borrowers. For example, if an existing borrower can get an 80%LTV at 6%, I don't want to be forced to pay 8% for the same LTV on the same principle (assuming similar income.) Of course, if we're all paying 8%; 10%; 20% - etc, I don't care - these finance costs will be reflected in the purchase price.

:-( I wish they'd be more specific about whom they want to borrow... I guess it might prove a good way to attract depositors - for example, promises of preferential rates if 10% of the purchase price has been on deposit for over a year - say. I wonder if any building societies will come up with this?

Edited by A.steve

Share this post


Link to post
Share on other sites

Perhaps in the future people will need to be with one bank/bsoc for some time, to build up a savings nest, show committment to sensible spending and to be able to afford a mortgage.

It wouldn't be a bad thing would it?

Share this post


Link to post
Share on other sites
This is frustrating. I am expecting to want a mortgage in (about) a year's time... and I want to establish a savings relationship with the most credible lenders (to minimise their perception of risk in lending to me.)

Now mortgage lenders are pulling the rug, I think it is becoming more important than ever before to establish a situation under which I'm not disadvantaged relative to existing borrowers. For example, if an existing borrower can get an 80%LTV at 6%, I don't want to be forced to pay 8% for the same LTV (assuming similar income.) Of course, if we're all paying 8%; 10%; 20% - etc, I don't care - these costs will be reflected in the purchase price.

:-( I wish they'd be more specific about whom they want to borrow... I guess it might prove a good way to attract depositors - for example, promises of preferential rates if 10% of the purchase price has been on deposit for over a year - say. I wonder if any building societies will come up with this?

this is not frustrating at all. it is actually a good news

it will kill the house priceses completely.

you just have to wait for 2-4 years. you can not buy next year because house prices es will take some time to hit the bottom ...

Share this post


Link to post
Share on other sites

This is not just Nationwide.

All lenders have been completely swamped with applications after high profile brokers have been in the press telling people to get their remortgage applications in 6 months in advance.

The lenders cannot cope and are therefore upping rates and withdrawing products. The problem is though that all lenders are doing this, so rates could be ridiculously high very soon, making mortgages unaffordable for many.

Better tie up your boat, cause there's a s*** storm coming.

Share this post


Link to post
Share on other sites
This is frustrating. I am expecting to want a mortgage in (about) a year's time... and I want to establish a savings relationship with the most credible lenders (to minimise their perception of risk in lending to me.)

Now mortgage lenders are pulling the rug, I think it is becoming more important than ever before to establish a situation under which I'm not disadvantaged relative to existing borrowers. For example, if an existing borrower can get an 80%LTV at 6%, I don't want to be forced to pay 8% for the same LTV on the same principle (assuming similar income.) Of course, if we're all paying 8%; 10%; 20% - etc, I don't care - these finance costs will be reflected in the purchase price.

:-( I wish they'd be more specific about whom they want to borrow... I guess it might prove a good way to attract depositors - for example, promises of preferential rates if 10% of the purchase price has been on deposit for over a year - say. I wonder if any building societies will come up with this?

Its only going back to how it was 10-20 years ago when you had to slosh money around various building societies and get pally with the manager. About time. I've still got some of those account ie Market Harborough Building Society etcc.

Share this post


Link to post
Share on other sites
This is frustrating. I am expecting to want a mortgage in (about) a year's time... and I want to establish a savings relationship with the most credible lenders (to minimise their perception of risk in lending to me.)

Now mortgage lenders are pulling the rug, I think it is becoming more important than ever before to establish a situation under which I'm not disadvantaged relative to existing borrowers. For example, if an existing borrower can get an 80%LTV at 6%, I don't want to be forced to pay 8% for the same LTV on the same principle (assuming similar income.) Of course, if we're all paying 8%; 10%; 20% - etc, I don't care - these finance costs will be reflected in the purchase price.

:-( I wish they'd be more specific about whom they want to borrow... I guess it might prove a good way to attract depositors - for example, promises of preferential rates if 10% of the purchase price has been on deposit for over a year - say. I wonder if any building societies will come up with this?

worry not - in a year's time house prices will be a lot less.

Share this post


Link to post
Share on other sites

just remortgaged with NW :)

Walked in, bagged a low fixed rate, no fee. Cant complain. Prob helped that I had a history of overpayments? Who know.

Wouldnt want to be a FTB now. Crikey.

Share this post


Link to post
Share on other sites

Not just Nationwide today.........

The Nottingham is to withdraw its current product range from the market to be replaced by a new portfolio of residential and buy-to let mortgage products on Friday.

The current product range will be withdrawn at 5pm tonight. Intermediaries have until 5pm tomorrow to submit their cases, and any appropriate paperwork, in order to secure the rates and terms associated with the current portfolio.

http://www.mortgagestrategy.co.uk/cgi-bin/...h=401&f=402

AND

Stroud & Swindon Building Society is temporarily withdrawing its mortgage range today.

It says it will relaunch a new range on March 31.

In an email to brokers it says that its current range is being withdrawn with immediate effect.

Stroud & Swindon says that faxed applications will not be accepted.

http://www.moneymarketing.co.uk/cgi-bin/it...h=341&f=342

Uh OH.....

Share this post


Link to post
Share on other sites
This is frustrating. I am expecting to want a mortgage in (about) a year's time... and I want to establish a savings relationship with the most credible lenders (to minimise their perception of risk in lending to me.)

Serious question - Does a 'savings relationship' actually make any difference? I wonder if they actually take any notice of this when making a lending decision, or whether its purely driven by credit rating, LTV ratio and earnings.

Share this post


Link to post
Share on other sites

I reckon soon the whole system will freeze up completely with no one lending to anyone which will cause serious problems to Remortgagers. I agree with the above about having to build relationships with the banks etc to get funding I think as mentioned in other threads small building soceities will clam up first and only lend to their own customers or credit worthy locals

Share this post


Link to post
Share on other sites
Perhaps in the future people will need to be with one bank/bsoc for some time, to build up a savings nest, show committment to sensible spending and to be able to afford a mortgage.

It wouldn't be a bad thing would it?

Heretic! Heretic! Burn Him! Burn Him!

Share this post


Link to post
Share on other sites
just remortgaged with NW :) [...../]

Wouldnt want to be a FTB now. Crikey.

NO POINT in being a FTB now........ Prices have to come down at leat 60% for FTB's to be in a position in which to AFFORD to be FTB's. It really is that plain -- and that simple!

Edited by eric pebble

Share this post


Link to post
Share on other sites

I agree this is snowballing, there isn't the money available, the taps need to be opened... like i said i think something big is about to happen..

Edited by moosetea

Share this post


Link to post
Share on other sites

Is this really a coming togerther of the interests (no pun intended) of mortgage lenders who don't want people leaving their fixed rate mortgages and swapping to cheaper ones.

Borrower A remortgages from lender X to cheaper mortgage 'product' with lender Y

Borrower B remortgages from lender Y to cheaper mortgage 'product' with lender X

Both lenders lose out.

Share this post


Link to post
Share on other sites
This is frustrating. I am expecting to want a mortgage in (about) a year's time... and I want to establish a savings relationship with the most credible lenders (to minimise their perception of risk in lending to me.)

Now mortgage lenders are pulling the rug, I think it is becoming more important than ever before to establish a situation under which I'm not disadvantaged relative to existing borrowers. For example, if an existing borrower can get an 80%LTV at 6%, I don't want to be forced to pay 8% for the same LTV on the same principle (assuming similar income.) Of course, if we're all paying 8%; 10%; 20% - etc, I don't care - these finance costs will be reflected in the purchase price.

:-( I wish they'd be more specific about whom they want to borrow... I guess it might prove a good way to attract depositors - for example, promises of preferential rates if 10% of the purchase price has been on deposit for over a year - say. I wonder if any building societies will come up with this?

House prices are irrelevant. If you get a house for significantly cheaper this time next year your mortgage payments will be the same anyway. That's why it doesn't make any difference unless you buy at the absolute bottom just after interest rates are halved like in 1997.

Share this post


Link to post
Share on other sites
Serious question - Does a 'savings relationship' actually make any difference? I wonder if they actually take any notice of this when making a lending decision, or whether its purely driven by credit rating, LTV ratio and earnings.

I don't see any mentions of my savings on my credit score. Only my debt payments.

Share this post


Link to post
Share on other sites
"This is really bad news for borrowers, as rates could go up and up, with no relation to the base rate or Libor."

House price crash well and truly on. Get out of that one Gordon.

Don't encourage him!

He's been ace numero uno manipulator for so long I wouldn't put anything past the slippery slug.

BTW have you noticed how his hair is going grey very rapidly?!

All those sleepless nights no doubt. :ph34r::lol:

Share this post


Link to post
Share on other sites
just remortgaged with NW :)

Walked in, bagged a low fixed rate, no fee. Cant complain. Prob helped that I had a history of overpayments? Who know.

Wouldnt want to be a FTB now. Crikey.

credit crunch not really registering with regards to prime borrowers. Out of interest did you get a better rate than they are offering online or through a broker or just one of their standard rates? I'll need to remortgage in december and my credit score is near perfect but just wondering if it will be better to go to a bank or to go through london and country.

Share this post


Link to post
Share on other sites
this is not frustrating at all. it is actually a good news it will kill the house priceses completely.

you just have to wait for 2-4 years. you can not buy next year because house prices es will take some time to hit the bottom ...

While it will be good news for many, I'm still getting older - and I can't buy extended lifetime.

I am not concerned about buying in a falling market if the purchase price and finance costs suit my budget... I am looking to buy a home not make an investment. I wouldn't look for the bottom of the market when trying to buy a car or a TV - why should houses be a special case?

I would be *extremely* aggressive in making low bids for the next couple of years at least... but even if the market has effectively frozen, there are sure to be some distressed sellers who will take the hit of 20 or 30% in order to make the sale "now" rather than wait 2 or more years before accepting the same price... especially if they have lots of "equity" and nothing to live on.

Its only going back to how it was 10-20 years ago when you had to slosh money around various building societies and get pally with the manager. About time. I've still got some of those account ie Market Harborough Building Society etcc.

I am anticipating this... and am trying to select appropriate lenders to "get pally" with. Nationwide was one of the candidates I was considering. I wish they'd clarify whose business they don't want...

Share this post


Link to post
Share on other sites
Don't encourage him!

He's been ace numero uno manipulator for so long I wouldn't put anything past the slippery slug.

BTW have you noticed how his hair is going grey very rapidly?!

All those sleepless nights no doubt. :ph34r::lol:

Yes - and lest we fear for poor Sarah Broon, I think he is usually at the desk in his tartan PJs all night..........chewing.....things.

Share this post


Link to post
Share on other sites
Is this really a coming togerther of the interests (no pun intended) of mortgage lenders who don't want people leaving their fixed rate mortgages and swapping to cheaper ones.

Borrower A remortgages from lender X to cheaper mortgage 'product' with lender Y

Borrower B remortgages from lender Y to cheaper mortgage 'product' with lender X

Both lenders lose out.

It does look like that from the outside, but really this is a direct effect of the libor rate shooting up. No one has the cheap cash lines anymore. We are returning to borrowing being based on deposits (unfortunately STR's are part of that problem) but apart from that the removal of these products is because the margins just don't stack up anymore. With cheap credit even the low teaser rates still could be worked to make money. Now its almost impossible.

The scary thing ... watch out for the financial companies that rely on huge volumes of mortgage products go to the wall this year. These companies don't make money off the mortgage they make it from the commisions. Already they are feeling the pinch. You will see the small independent advisors go first, then the larger ones cut back massively. It won't directly affect the banks straight away, but expect some very very heavy job cuts by the end of the year.

The fallout from the IFA's trying to move to other products should be very interesting. I'm also expecting a significant uptick in pensions towards the end of the year as that becomes the focus for IFA's.

This summer is going to be a bloodbath in the financials.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 298 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.