Price war slims mortgage 'spread'

Article Abstract:

The vote in favour of mutuality at the Nationwide building society should benefit savers and mortgage borrowers throughout the UK by ensuring that the society continues to offer competitive interest rates. Banks and converted building societies will be encouraged to limit their own mortgage interest rates to maintain their market share. The standard rate currently offered by banks is 8.95%, while Nationwide offers 0.85 points less, although this could rise by up to 0.6 points by September 1998. Competitive pressure in the mortgage market also stems from the slowdown in house sales, with around 40% of mortgage business now coming from remortgages rather borrowers moving house. However, the practice of attracting new borrowers by offering low-cost rates over an initial period but linked to tough redemption clauses could soon be attacked by the new Financial Regulation Bill.

Comment:

Vote in favor of mutuality of the company is expected to benefit savers & mortgage borrowers throughout the country

Strategy & planning, Nationwide

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New banks cost customers more

Article Abstract:

Newly converted building societies cost their customers twice as much as those with mutual societies, according to the Building Societies Commission. The margin between savings and borrowing rates was 1.25% for mutual societies while new banks were at 2.5%. The commission chairman, Geoffrey Fitchew, believes societies can sustain their competitive edge. This evidence may influence the Nationwide's conversion vote later this month.

Comment:

UK: Newly converted building societies in country cost their customers twice as much as those with mutual societies

Marketing procedures

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UK: BUILDING SOCIETY CHAIRMAN QUITS

Article Abstract:

Morris Hart, the chairman of Chelsea Building , resigned on 16 May 2000 as it became clear he would have to stand in front of a tribunal to face charges over irregular accounting behaviour whilst he was employed at Bird Luckin, the accountancy firm. The audit was carried out on behalf of Queen's Moat House.

Executive changes & profiles, Banking industry, Officials and employees

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