It's good news week!
There's been nothing to report for a while, but now...
It's good news week!
Yes, at a time when the stock market is reeling from the collapse of the sub-prime market, (see HERE) when Victoria mortgages have gone bust, when Northern Rock is on its uppers and holding out the begging bowl to the Bank of England, (that's our money by the way) with Bradford and Bingley shares at almost half price, with Countrywide mortgages having spent the 11.5 Billion dollars they borrowed and gone to the Bank of America for a further 2 Billion, and with Merrill Lynch taking an 8.5 Billion pound loss, what do we folk in Yorkshire do?
Well if you're Skipton building society, not only do you take such news in your stride, but you actually open up a new deal for sub-prime borrowers, even those with unlimited CCJ's against them!
That's right! Pink, (details HERE) a subsidiary of HML which is of course a subsidiary of Skipton building society, has just launched a new range of deals for this very market, including all categories of sub-prime borrowers from feather, light, and medium, to unlimited. That's those with unlimited CCJ's against them.
Fortunately they have allowed self certified statements of income, where the borrowers can merely state their income, and loans up to £500,000 are available.
Details HERE.
At a time when the financial world is reeling from the shocks brought on by the sub-prime collapse in USA it's good to know that here in Yorkshire we're still keeping the flag flying for those borrowers who wouldn't stand an earthly from the likes of Capt. Mainwaring and Martin's bank.
Well done Skipton building society!
Meanwhile Amber, another subsidiary, and the ones under investigation by the FSA for charging up to 11.95% on loans to sub prime customers - is now under fire for selling on its loans. In the small print of the contracts signed by their borrowers was a little clause, which said they could sell the debt on. Customers received letters telling them that if they did so, then nothing would change, but things did!
Amber sold loans on to a company called Redstone mortgages, who hiked interest rates up by an eye watering 11% plus -just what you need if you're finding your mortgage a bit tricky to pay!
Amber's comments were that its actions were legitimate, because borrowers had signed the clause allowing the lender to sell the loan on, so that's all right then.
Details HERE
Gordon Jolly, the managing director of Amber, commented that it tried to protect customers from rate increases when loans were sold on, presumably by asking the new lenders if they would not increase interest rates.
Perhaps he asked them nicely:-)
Thinks...Wonder if Skipton building society borrowers have that same little clause in THEIR loans?
Oh well, it won't matter as long as that nice Mr. Jolly protects them.
And with a name as nice as that, every bit as nice as that lovely Mr. Champagne, who regularly picks me out of thousands to win a prize, who could doubt it all turning out nicely in the end?
LORD POLONIUS:
Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
Labels: Hamlet.
posted by Paakwa at
9:29 AM
1 Comments:
You're on the ball again, Pakwaa! And what about the news item in today's The Times ...
"FINANCIAL SYSTEM AT RISK FROM NEW SHOCKS, SAYS BANK OF ENGLAND
Britain’s financial system is vulnerable to new shocks in the wake of its most severe challenge for decades, and banks and authorities must learn the lessons of the crisis, the Bank of England says today.
In its first detailed analysis of the squeeze that has engulfed credit markets since the summer, the Bank says that financial institutions have become more fragile and that the availability of credit may tighten. In turn, it sounds a warning that tighter lending conditions could spell serious fallout for the economy, with sub-prime borrowers and highly-leveraged companies particularly exposed.
The Bank’s unexpectedly gloomy report goes on to warn investors that share prices in Britain and the US could prove “vulnerable to any further revision in growth prospects”. A further danger is that the dollar could fall sharply if adverse sentiment towards US securities persists, it says.
Sir John Gieve, the Bank Deputy Governor, admitted that although it had expected some of the problems, “the speed and ferocity” of the global disruptions “had not been anticipated by firms or authorities”.
The Bank’s half-yearly Financial Stability Review, published today, says that the turmoil “has proved to be the most severe challenge to the UK financial system for several decades” and calls for the UK’s crisis management tools to be strengthened. It says that “serious fragilities” have been exposed within the so-called originate and distribute business model used by many financial firms to parcel up debt.
British banks are especially vulnerable. They face a bill of almost £150 billion, hitting their profitability, if the credit crisis forces them to set aside capital against their exposure to structured investment vehicles (SIVs), leveraged loans and mortgage-backed securities, the Bank says."
[ends]
Against such a background, is Skipton Building Society living on borrowed time?
Surely not!
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