Brendan Burgess
Founder
- Messages
- 52,279
The original idea of building societies was to provide finance to people to buy their own homes. The building societies lost sight of their original objectives.
The existing lenders can't operate profitably because of two big legacy issues - bad debts and their tracker mortgage book. So they have to charge very high Standard Varibble Mortgage rates.
So why not set up a truly mutual building society which would not have to deal with these legacy issues, which would put customers at the heart of their business?
The existing lenders can't operate profitably because of two big legacy issues - bad debts and their tracker mortgage book. So they have to charge very high Standard Varibble Mortgage rates.
So why not set up a truly mutual building society which would not have to deal with these legacy issues, which would put customers at the heart of their business?
- Cheap and flexible mortgages
- Possibly link mortgage rates to ECB
- Good deposit rates
- Lending only for the purchase of new homes
- No other products - just home loans - keep it simple
- Very conservative lending criteria e.g. 80% max ltv and three times salary
- Fair treatment of borrowers in trouble