Mortgage customers of the Derbyshire and Cheshire building societies need not panic at the news that the Nationwide is to take over the two. The move marks a ‘rescue deal’, as described by Graham Beale, the chief executive of the Nationwide Building Society.
Under the deal, the Nationwide is gaining £12 billion of assets and 95 building society branches. Also, the 925,000 members of the two building societies haven’t been allowed a vote in the takeover, and won’t be receiving anything in the way of any financial windfall from the deal. The Nationwide can do this if the deal is approved by the FSA (Financial Services Authority).
Graham Beale has insisted that the deals were made because they were an attractive proposition for the Nationwide, not just because they represented financial stability within the building society sector. However the stability the takeover represents is good news for mortgage customers. This is important when considering the fact that the Derbyshire Building Society has been victim of falling house prices in the area for its customers. The Derbyshire building society made a significant first half year loss, totalling £17 million.
Graham Beale also predicts that there will be no job losses as a result of the merger.
We’re very happy to have one of their branches sitting next to one of our branches.
The Nationwide is currently ranked number two in the UK for mortgage lending assets. By absorbing the Derbyshire and the Cheshire, their position is strengthened within the UK mortgage market.
For those considering CeMAP training to become a mortgage advisor, the news that no branches are expected to close is important to note.
