http://www.charcol.co.uk/ Mortgages & me is provided by Charcol en http://www.charcol.co.uk/fileadmin/templates/images/favicon.ico http://www.charcol.co.uk/ Mortgages & me is provided by Charcol TYPO3 - get.content.right http://blogs.law.harvard.edu/tech/rss Thu, 04 Mar 2010 13:05:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/happy-birthday-bank-rate-now-its-all-about-the-politics/4319/ Following the publication of last month’s Quarterly Inflation Report there was little doubt that bank rate would remain on hold this month. The good news for borrowers is that while bank rate remains dormant, mortgage rates continue to drift lower. Availability of home loans above 75% loan to value has continued to improve and this has prompted more competition and a subsequent beneficial impact on pricing. Despite this, borrowers should be wary of politicians, if they are not already, and their impact on the market.The publication of the much-discussed poll in last weekend’s Sunday Times caused a sharp fall in both sterling and gilts on Monday, as the likelihood of a hung parliament began to creep further into the overall equation. One thing markets hate is uncertainty and a hung parliament would clearly bring that.This kind of market reaction cannot be ignored when considering future mortgage options. The economic arguments continue to suggest a tracker mortgage is the right choice for most borrowers because the economy is in such a mess that very low interest rates are here for some time yet. Yet the election cannot be ignored. The markets have been expecting a Conservative majority and what once looked like a forgone conclusion is now not so certain. This may have a negative effect on fixed rate pricing.The message for borrowers is simply that no generic advice will do. The political uncertainty may mean the right choice for some borrowers is to batten down the hatches and lock into a fixed rate for at least five years, but with the difference between these and the best tracker mortgages around 2.5%, there is a big premium for the security of a fixed rate. Seeking independent mortgage advice on your own specific situation has arguably never been more important.One month doth not make a trend – approvals should bounce backFinally, it is worth highlighting that some commentators have suggested the weak mortgage lending and approval figures for January are an indication that the steady improvement in the housing market is coming to an end. It is always very dangerous to take one month’s results as gospel. All the figures we see indicate January was an aberration, almost certainly caused by the snow which naturally had a significant impact on prospective buyers’ ability or willingness to look at properties. We expect to see a bounce back in February’s approval and lending figures. Thu, 04 Mar 2010 13:05:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/news-from-john-charcol/4281/ Towergate Financial Acquires John Charcol Towergate Financial, the financial advisory business of the Towergate Partnership, today announces the acquisition of John Charcol, the leading independent mortgage advisory business.Under the terms of the deal, all John Charcol staff and directors will be making the move to Towergate Financial. John Charcol CEO John Garfield will work closely with Towergate Financial CEO Ian Darby to grow the business alongside his current management team.John Charcol is one of the UK’s best known independent mortgage brokers and a key element of Towergate Financial’s growth strategy is to establish a mortgage broking proposition to complement its private client and corporate solutions businesses.Towergate Financial is part of the Towergate Partnership, Europe’s largest independently owned insurance intermediary. Towergate’s business consists of a number of specialist underwriting agencies and regional brokers providing a wide range of niche and general insurance products to individuals and businesses.Towergate Financial attaches great importance to the skills and experience of the advisers and staff of John Charcol and believes that they will be vital for the continuing success of the business. Ian Darby said, “We believe there is an excellent fit between our business and John Charcol. John Charcol has an incredibly strong brand in the mortgage market built over many years, based on top quality advisers and great advice. We jointly have a great opportunity to offer financial planning and insurance solutions to Charcol's clients and vice versa.”John Garfield said, “Joining forces with the team at Towergate Financial will provide our business and people excellent opportunities to work with Towergate's businesses to our mutual benefit and to thrive in what is a very exciting time for the mortgage market." Tue, 23 Feb 2010 10:40:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/bank-rate-held-at-05-but-remortgaging-returns/4207/ Let's make the first bit quick. Bank rate was held at 0.5% by the Bank of England today, no surprise there then...however, of more interest is... The return of the remortgage?The slowly improving mortgage market will certainly make buying a property a little easier. However, with several lenders having announced increases in their standard variable rate (SVR) over the last month, it will also mean that more borrowers will find it worthwhile remortgaging. Remortgage activity fell steadily throughout the whole of last year but the combination of actual increases in SVRs, plus fears of increases, coupled with the cheaper rates now available for new mortgages, means that anyone paying an SVR of at least 3.5%, or about to revert to one, should consider a remortgage if they have at least 20% equity in their property. Assuming property prices continue to rise, even only gently, the number of borrowers with at least 20% equity will steadily increase, making a remortgage progressively worthwhile for more people. For this reason I expect the dramatic fall in the volume of remortgaging to be close to end and to see a slow increase in remortgage activity this year. Thu, 04 Feb 2010 15:01:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/bank-rate-decision-a-forgone-conclusion/4205/ Just 40 minutes to go before February's announcement from the Bank of England on Bank Rate. You'd have to be a brave person to predict anything other than a hold but whether QE is stopped or not is not quite as easy to call. Whatever the decision, it looks like the remortgage market will start to pick up again soon. More to follow... Thu, 04 Feb 2010 11:19:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/skiptonhave-they-really-done-that/4161/ The big news today is that the Skipton Building Society has increased its Standard Variable Rate from 3.5% to a staggering 4.95%, at the same time breaking contracts with thousands of their borrowers. They had promised never to have an SVR that was more than 3% above bank rate ( currently 0.5%) so they have driven a coach and horses through that one. Borrowers with a Skipton mortgage should get in contact soon and see what their options are. Moving away form Skipton is likely to be top of the tree... Thu, 21 Jan 2010 17:17:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/4-out-of-5-mortgages-bought-in-december-were-variable-rates/4155/ Variable rate mortgages accounted for more than four in every five (80.9%) home loans arranged by John Charcol in the last month of 2009. The John Charcol Index revealed that the proportion of fixed rates has fallen below 20% for the first time since August 2008. Click here for full details Wed, 20 Jan 2010 14:27:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/inflation-rise-above-expectationswhat-now-for-bank-rate/4137/ There is a possibility that interest rates could rise sooner than expected after the latest inflation figures showed a larger than anticipated rise to 2.9% in December. Some of the increase can be attributed to VAT being lower this time last year, but clearly not all of it.I suspect that the Bank will argue this is temporary, but swap rates - which aim to predict the future of interest rates - have reflected the jump and are showing a bigger chance of an upward movement in 2010. For borrowers the message is clear. Being on top of your mortgage and ensuring you get the best independent advice has never been more important. Tue, 19 Jan 2010 13:59:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/fixed-rates-fall-again/4105/ With Yorkshire Building Society announcing cuts from today across the board in its fixed rates, they become the latest lender to cut rates despite a static bank rate and swap rates at the top end of their recent trading range. Last week Chelsea, Coventry, Halifax, HSBC and Nationwide all cut some fixed rates and ITL mortgages expanded its range to include competitive 95& LTV fixed and tracker rates. With its new rates Coventry has adopted a different stance to most lenders by primarily targeting the low LTV remortgage market, with very competitive fixed rates for 3 and 5 years for LTVs up to 50% LTV at 4.25% and 4.99% respectively, both with a £999 fee and a free valuation and free legal fees.There are a number of reasons that account for why we are seeing these cuts. There is undoubtedly an increase in competition with a number of new lenders currently in the starting blocks waiting for the gun. Additionally, lenders are far less dependent on swap rates for their new funding, rather looking toward their savers to balance the books. It is also John Charcol’s belief that lenders are becoming more comfortable with the wider economy, most notably the bounce in house prices and the expectation that interest rates will remain low for some time – resulting in far less repossessions than initially expected. And, underlying all this, is a modest improvement in wholesale funding.The buy to let market is now also benefitting from an increase in competition, with an increased range of products and/or lower rates announced over the last week from BM Solutions, Godiva, Whiteaway Laidlaw and Aldermore and, from tomorrow, The Mortgage Works. With the buy to let market suffering badly over the last 2 years, this is welcome news for many of the UK’s landlords. Fixed rate mortgages Interest rates Mortgages Mon, 11 Jan 2010 16:26:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/to-fix-or-to-track-your-thoughts-please/4095/ There is much debate in the industry and press currently as to the right course of action when it comes to picking a mortgage. At JC, we still believe that trackers are likely to be the product of choice for some time, but would be interested to know what others think. So please let us know Fri, 08 Jan 2010 13:30:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/the-devil-is-in-the-detail/4007/ Commenting on the announcement from Abbey that they are to offer fee free current accounts to borrowers who have their mortgage with them, Drew Wotherspoon of John Charcol, says:"As ever, the devil will be in the detail. The prospect of fee free overdrafts and no charges for bounced cheques seems enticing, but at what price? It is about evaluating the whole package and seeing whether the mortgage is right for you. No fees are all well and good, but if your mortgage is not competitive and you are not the type of person who incurs fees anyway, then there is little point in doing something like this. As well as this, if you have a history of incurring bank charges, in these austere times, you are unlikely to get a competitive mortgage anyway. 6% on your current account also seems attractive, but it is only for a year, whereas a mortgage can be a commitment for up to 25 years. Borrowers should think carefully and get independent advice before jumping ship to Abbey" Fri, 20 Nov 2009 11:15:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/85-loan-to-value-back-with-nationwide/3931/ In a welcome sign that the market is continuing to ease, Nationwide is increasing its loan to value on a number of its tracker products to 85%. This is welcome news for many consumers who have been unable to get on the property ladder due to an insufficient deposit and those who have been unable to move for lack of equity in their current property. The new products include a 2 year deal at 4.93% and a 3 year deal at 5.03%. This is certainly the latest development in the overall improvement in the mortgage market which is good news for the nation's borrowers and would be borrowers. Wed, 28 Oct 2009 10:00:00 +0000 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/no-action-from-mpc-but-competition-is-hotting-up-in-the-mortgage-market/3865/ Today’s no change decision may be a bit of a non event but there is at last some action back in the mortgage market. September saw the usual seasonal upturn and over the last few days we have at last started to see some real competition from lenders, albeit primarily for lower LTV business. Woolwich, Northern Rock, Abbey, Alliance & Leicester, Principality and Coventry have all announced cheaper deals this week which is good news for borrowers. This activity has been encouraged by 3 month Libor stabilising just above Bank Rate at 0.55% and swap rates continuing to fall sharply following the MPC’s decision in August to extend Quantitative Easing by £50bn. 2 year swaps hit a new all time low of 1.75% this week and 5 year swaps are at 3.10%, 0.65% lower than the rate of 3.75% the day before the August MPC meeting.What should borrowers do now?Although the cost of fixed rate mortgages has fallen a little over the last month most still look expensive in relation to tracker/discount rates, some of which have also fallen during the month. Thus variable rates continue to look more attractive for those borrowers who don’t need or want the security of a fixed rate. On Tuesday of this week Woolwich reduced the rate on its lifetime tracker by 0.45% up to 70% LTV and cut the early repayment charge (ERC) period to 2 years. Its new lifetime rate is Bank Rate + 2.29% with an ERC of 1% to 31/1/12. HSBC is still offering ERC free lifetime tracker rates at Bank Rate + 2.24% up to 60% LTV, Bank Rate + 2.45% to 75% LTV and Bank Rate + 4.09% to 90% LTV. With the exception of HSBC’s 2 year discount at 1.99% these 4 lifetime trackers are cheaper than nearly all the 2, 3 and 5 year trackers or discounts currently available and thus for most borrowers wanting a variable rate one of these lifetime trackers will be cheaper than a short term deal.And what will we see next month?The minutes of last month’s MPC meeting suggested that inflation will be very volatile over the next few months. They also flagged up that as the expected autumn utility price falls hadn’t materialised the likelihood of CPI falling below 1% was reduced but that short tem volatility in CPI would have little implication for policy unless the medium term outlook changed. Next month’s Quarterly Inflation Report will provide a useful update on the Bank’s inflation expectations and give the MPC more confidence in deciding whether to extend the Quantitative Easing programme. The one set of economic statistics which continues to record increases are the house price indices. Nationwide’s real, i.e. non seasonally adjusted, index, has risen by 5.7% in the first 9 months of this year and 9.5% from its floor in February. The imminent ending on 31 December of the temporary suspension of stamp duty land tax on properties between £125,001 and £175,000 will persuade some people to bring forward a purchase, especially as house prices are still rising, and, although the impact is likely to be modest, it will flatter house prices indices until the end of this year, at the expense of smaller increases next year. In line with my forecast last month house prices as measured by Nationwide for September are unchanged on a year on year basis. When October’s figures are announced I confidently expect the year on year figure to be comfortably into positive territory. I now expect this index to end 2009 with a rise of around 71⁄2% but for the rate of increase to slow down in the New Year. However, if house prices were to continue to increase next year at the current rate there would be a serious risk of an earlier than expected increase in Bank Rate. Thu, 08 Oct 2009 12:28:00 +0100 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/market-update-7th-september-rates-banks-and-housing-market/3755/ Rates Bank Of England rate - 0.5% - kept on hold (next decision 10th September) ECB rate kept on hold at 1% - (next decision 8th October) A meeting of the Bank for International Settlements (BIS), which consists of the world's central banks, have backed new measures to strengthen supervision of the global banking industry, and pledged to increase bank's capital requirements. The plans should "substantially reduce the probability and severity of economic and financial stress," the BIS said. However they did not set out a timeline for implementation of the proposals. The measures will be outlined in detail by year-end and be introduced in a way "that does not impede the recovery of the real economy."The BIS, established in 1930 in the aftermath of the Great Depression, consists of 55 member central banks and is based in Basel. The meeting, on Sunday, was held by members of the Basel Committee on Banking Supervision. "The agreements reached today among 27 major countries of the world are essential as they set the new standards for banking regulation and supervision at the global level," said Jean-Claude Trichet, the head of the European Central Bank chief who presided the meeting. In addition to holding on to more capital, the BIS agreed to boost the standards for so-called "tier one" capital requirements - which essentially means the quality of the assets that banks have on their books in relation to their deposits. Banks The much heralded G20 meeting of finance ministers has agreed a series of measures to try to regulate the global banking system, including new controls that rewards long-term performance rather than short-term risk-taking. However the meeting did not agree on specific limits on the amounts individual bankers get paid. Britain, the US and Canada opposed the idea, but the Financial Stability Board is to examine the issue. It will report back to the summit of G20 leaders in Pittsburgh, Pennsylvania later this month. The countries agreed on measures requiring banks to disclose the pay and bonuses of their highest-paid employees and to allow bonuses to be "clawed back" if decisions which seemed successful later go wrong. The FSB has also been asked to look at the desirability of new rules which would allow regulators to rule on whether the total pool of cash set aside by a bank for bonuses is excessive, given its long-term financial stability and strength. Ministers also pledged to continue financial support for the global economy until recovery from recession is secured. They said they would develop co-ordinated "exit strategies" to deal with ballooning public deficits once the recession is over. But they warned that although there were signs of recovery in the world economy, that recovery would not have happened without massive intervention from governments - and all bankers should take note that they owed their salvation to action by taxpayers. US SecTreas Tim Geithner said the momentum for financial reform needed to be kept up despite the signs of an upturn. "Actions (by the G20) have pulled the global economy back from the edge of the abyss. The financial system is system is showing signs of repair," he said. "However, we still face significant challenges ahead. Unemployment is unacceptably high. Conditions for a sustained recovery led by private demand are not yet established." UK Chancellor Alistair Darling said all bankers were obliged "to make sure that their pay practices are responsible". He said: "Above all we are determined to take action to stop banks or other financial institutions getting themselves into a situation where their pay-and-reward practices actually encourage people to take risks which bring their institutions into a situation where they could be brought down with catastrophic results." Discussing possible regulation of bonuses, the PM said: "If you have got an institution that is struggling or it's in the process of rebuilding itself the regulator could say that pool set aside for bonuses is really too big." Mr Darling added: "Critically now the job is to make sure that you translate those principals into practical propositions that actually bite and actually work. We need to have standards that are observed right across the world."Banking group RBS-NatWest - majority owned by the taxpayer - has broken ranks with the rest of the industry and decided to slash its overdraft charges, in a move which comes ahead of a decision of the new Supreme Court on whether or not the OFT can regulate these charges. From 1 October, RBS and NatWest customers will be charged only £5 for having a cheque bounced, down from £38. The fee for paying an item on an overdrawn account falls in half to £15. "This is good news for customers, not least because the fees for unarranged borrowing have been an area of ongoing concern for them," said the chief executive of the bank's UK operations, Brian Hartzer. "As we look ahead there are many issues to consider, but we thought it was time to move this particular customer concern forward by cutting our charges. "As it relates to past charges we are awaiting the outcome of the industry-wide bank charges test case," he added. At stake is annual income for the banks of more than £2bn a year, and many experts will be scrutinising the new structure of the bank's charges to see if the lost income is being made up elsewhere. The RBS-Natwest group declined to say how much income it would forego each year from its reduced fees, but a spokesman said its change of policy had been prompted by the arrival of the new chief executive Mr Hartzer and that there had been no pressure from the government to change the bank's overdraft fees. It is thought many other banks will now follow suit.The BSA has said that planned new regulation will make it difficult for them to compete with banks. Proposals from the FSA, include plans to limit riskier types of lending by building societies, thought to include high loan-to-value mortgages for borrowers with small deposits and buy-to-let mortgages. The BSA says these proposals would disadvantage the industry, and has made a formal submission to the FSA following a consultation period on the proposals. Adrian Coles, director general of the BSA, said the proposed regulation would have a "discriminatory and anti-competitive effect in the mortgage market". The FSA declined to comment. UK Mortgage / Housing Market Thousands of buy-to-let investors attempting to renege on contracts where property values have dropped below agreed off-plan sale prices face legal action from developers intent on holding them to the deal. New-build flats, which were popular as buy-to-let investments, have suffered price falls of up to 40 per cent. Buyers, most of whom have paid cash deposits of 10 per cent, are now struggling to obtain financing to complete the deal. "Many investors think that they can withdraw from a purchase for which they have exchanged contracts and simply sacrifice their deposit, but the legal position on this is quite clear," said Jeremy Raj, head of residential property at Wedlake Bell, the law firm. "The buyers are legally obliged to complete on the transaction." House Prices Interest rates Mortgages Tue, 08 Sep 2009 10:13:00 +0100 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/market-update-20th-august-rates-banks-and-housing-market/3699/ Rates Bank Of England rate - 0.5% - kept on hold (next decision 10th September) ECB rate kept on hold at 1% - (next decision 3rd September) Expectations were growing in the City last night that interest rates could remain at historically low levels for years after the Bank of England gave a strong hint that it might again expand its policy of flooding the economy with money. Markets were taken by surprise yesterday when minutes of the latest meeting of the Bank's monetary policy committee showed that the governor, Mervyn King, had wanted to pump an extra £75bn into the financial system but was outvoted. Gerard Lyons, chief economist at Standard Chartered Bank, said it was now possible that King would not raise interest rates from their current all-time low of 0.5% during his current term as governor, which lasts until mid-2013. Banks Lloyds Banking Group is to review its decision to close its C&G branch network, and admits that the decision may now be reversed. A Lloyds spokeswoman said that in the meantime, the branches would not close in November as planned. The Unite union said it welcomed the announcement, but was angry at the "poor management" at Lloyds. Lloyds said in a brief statement that "customers will continue to use the C&G network as usual. All affected colleagues have been briefed by their line manager today." UK Mortgage / Housing Market According to the latest figures from the CML, mortgage lending continues to rise. Gross lending in July stood at £16bn, 26% higher than in June, though still more than a third lower than in July last year.Mortgage lending, house sales and property prices have all picked up in the past few months after a dramatic slump caused by the banking crisis.But the CML warned the housing market would slow down again later this year, as the CML's economist Paul Samter said, "The CML's July gross lending estimate of £16 billion is the highest level in nine months and consistent with the rise in house purchase approvals," before adding "We anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge." The improvement in mortgage lending in July was due to the rise in house buying usually seen during the summer, the CML said. Thu, 20 Aug 2009 13:10:00 +0100 http://www.charcol.co.uk/knowledge-resources/mortgages-and-me/article/view/market-update-rates-banks-and-housing-market/3695/ Rates• Bank Of England rate - 0.5% - kept on hold (next decision 10th September) • ECB rate kept on hold at 1% - (next decision 3rd September) Minutes of the MPC meeting on 6 August reveal that the Governor of the Bank of England and 2 others, wanted to pump more money into the UK economy but were outvoted by fellow policymakers. Mr King wanted £75bn rather than the £50bn that was injected.The decision to pump £50bn came as a surprise, and was already twice the £25bn that the market expected. The minutes back up the Bank's statement earlier this month, saying that the UK recession "appears to have been deeper than previously thought".But the 6-3 split on the MPC shows that views within the bank differ on just how deep the recession is, and the outlook for inflation.Analyst Peter Dixon at Commerzbank said, "It was surprising we had three members looking for £75bn. This clearly suggests the bank is leaving the door open for additional measures should they feel need a rise. Quantitative easing is still very much in play."The committee noted that stock markets had "increased considerably", and that Libor, had fallen. It also noted that there were "promising signs" that quantitative easing was "having a positive impact". However against this, the committee said that lending conditions remained tight, economic activity remained weak and the "recovery in global demand remained susceptible to further shocks". These factors would, it said, "most likely lead to a slow recovery in the level of economic activity", which meant further action needed to be taken.While six members of the committee voted for a £50bn expansion in quantitative easing, the governor, along with Tim Besley and David Miles, voted for a £75bn expansion, arguing that too little stimulation would mean inflation remaining below its target of 2% for "a sustained period of time... and might harm public confidence in the recovery, causing it to falter". They added that if £75bn proved to be too much, they could reverse the policy, by selling assets, and increase interest rates.All nine members of the committee voted in favour of keeping interest rates at 0.5%.Banks The KPMG UK Banks Performance Benchmarking Survey has suggested that the retail arms of the UK's High Street banks are likely to see losses in the second half of 2009. The survey also says that despite modest profits in the first half of the year, bad loans would lead to losses, and that these losses from bad loans will not peak "until 2010 or beyond.""Retail banking is just profitable at lower levels, but with rising impairments. It seems probable that it will fall into loss making in the second half of the year," says KPMG. They add that competition for savings accounts and the increased cost of lending between banks has impacted retail banking. Looking ahead, KPMG says that continued uncertainty in the mortgage market will make life difficult for retail banks. UK Mortgage / Housing Market According to CML data, six mortgage lenders increased their hold over the market for new UK home loans in 2008.• The top six, led by the Lloyds banking group, accounted for 78% of all new loans, compared to 72% the year before. • After Lloyds, the biggest lenders in 2008 were Santander, the Nationwide, Barclays, RBS and HSBC. • Overall new lending fell by 28% last year, with many specialist lenders being driven out altogether.The CML said the credit crunch, which started in 2007, had dried up the supply of mortgage finance. "The lending community itself has undergone... dramatic changes," the CML said. With so many lenders either merging or ceasing lending, this year's largest lenders' table has changed more than in other years," it added. A key factor was Northern Rock dropping out of the top-ten mortgage lenders as a result of its insolvency in 2007, when it accounted for 8% of all new lending, as opposed to 2008 when it lent just 1.1% of new mortgage funds.The CML said another factor was that specialist lenders - those which did not depend on savers' money to finance their lending - had fallen from a 7% share of new lending to just 2%, and of a much smaller market. Our Guru, Ray Boulger is quoted as saying "borrowers were now receiving the worst of all possible worlds. If you have fewer lenders you have less competition," he said. "Those lenders still in the market have only limited amounts to lend, so they aren't competing hard with each other if borrowers have less than a 25% deposit," he added.Building societies were also badly affected by the drying up of funds from the wholesale banking markets, with the Nationwide taking over the Cheshire and Derbyshire building societies, and mergers between the Scarborough and Skipton, the Catholic and the Chelsea, and the Barnsley and Yorkshire building societies. "We may not have seen the end of the current wave of consolidation," the CML warned. "So, next year's table is likely to look different again, with more new names and an even larger market share in the hands of the largest firms," it added. Wed, 19 Aug 2009 12:05:00 +0100