Is the building society sector slipping away?
Over the last few months the UK banking sector has grabbed the headlines although unfortunately we've also seen a number of casualties in the building society sector. Not only did we see former building society Northern Rock collapse and taken over by the government, we also saw problems at the Dunfermline building society and problems with the West Bromwich building society.
One of the main issues which have grabbed the headlines regarding mutual societies is the fact that the West Bromwich building society was the first to bring in third party investors and introduce outside finance to the operation. These new investors literally saved the day as the society was on the verge of collapse due to a number of mortgage arrangements which had "gone wrong". Many people believe this particular change in approach by the West Bromwich building society is a major crossroads for the sector and could see a change forever.
The mutual society has been the cornerstone of the UK financial sector for many years and one which has attracted a massive number of customers, all under the impression that the sector was safer and more secure than the larger banking arena. However, unfortunately as the ongoing recession has shown, the sector is maybe not as secure as it once was with a number of changes to the way in which finance is raised probably at the core of the problem. The chances are that the mutual sector, and in particular the building society sector, may never be the same again.
Share this..
Related stories
UK government to pay gap year students for foreign trips
The UK government, via the Department for Business, Innovation and Skills, has today confirmed that up to 500 young graduates under the age of 24 will be paid to work in places such as Costa Rica, Borneo and Nicaragua, on projects which include building schools. While they will have to pay the first £1000 cost towards the trip and arrange their own flights and vaccines, they will be paid by the U...
Read MoreTakeover talks at Blacks Leisure flounder
While the market took note of the £83 million sale of the JJB fitness division to founder Dave Whelan, there was bad news for Blacks Leisure shareholders with news that takeover talks have ended with no agreement. Among a number of potential suitors, Mike Ashley, the owner of Newcastle United and Sports Direct, was seen by many as the front runner. His 29% stake in the company would have made a v...
Read MoreWhy loft insulation could save you a fortune
There are many areas of the home where energy is wasted and heat is lost although your loft is highly likely to be one of the most expensive areas of your property. It is widely known that heat rises and unless your loft is insulated, and updated on a regular basis, you will lose significant amounts of heat through your roof, through your loft and through your tiles.
One of the prob...
Thinktank suggests seven pence rise in income tax
The National Institute of Economic and Social Research has reviewed the finances of the UK government and made some rather startling suggestions which will not make good reading for the UK taxpayer. The institute believes that either income tax in the UK should increase by seven pence in the pound or the pension age should be increased to 70 years in order to plug the massive gap in the UK governm...
Read MoreGDP growth prospects cheer UK businesses
Strong prospects for UK economic growth during 2007 has left businesses feeling upbeat, a survey shows.High street bank Lloyds TSB's latest monthly business barometer, published today, shows an increase in the number of firms claiming conditions are set to improve.Sixty-nine per cent said their business activity would rise in the next 12 months, compared t to 62 per cent in February's poll.Sustain...
Read More