View more on these topics

Nationwide bails out Dunfermline

Nationwide has taken on collapsed mutual Dunfermline’s 34 branch retail network, its £1bn mortgage book and £2.3bn deposit book.

The purchase of Dunfermline comes hot on the heels of Nationwide taking on Cheshire and Derbyshire and further widens the gap between the super-mutual and the rest of the building society sector.

A statement from the Treasury says that loan and mortgage customers can continue to contact Dunfermline in the usual way and a statement should continue to make repayments as normal.

All of Dunfermline’s staff have also been transferred to Nationwide.

Dunfermline’s social housing portfolio has been placed into a bridge bank, wholly owned by the Bank of England.

This will allow the Bank of England and the Treasury to determine the best outcome for this part of Dunfermline’s business and underlines the government’s commitment to maintaining the availability of lending to Registered Social Landlords.

The government is talking to a number of people, including the Scottish government, about securing a long-term future for the social housing book.

The deal excludes high risk assets that Dunfermline had on its books such as commercial loans and some residential loans which including acquired residential mortgages and equity release loans.

Graham Beale, chief executive of Nationwide, says: “This is good news for the members of Dunfermline who are now joining the world’s largest building society.

“Nationwide is in a unique position by virtue of its size and financial strength, to provide support to Dunfermline, and we regard it as both responsible and commercially beneficial to undertake this transaction.”


Recommended

RICS set to raise global valuation standards

The Royal Institution of Chartered Surveyors is to set in motion a global consultation to develop an enhanced regulatory framework for valuations.It hopes this will raise professional standards, improve confidence for clients and help secure the accurate valuations that underpin most economic activity.If approved, all members involved in the valuation of commercial and residential property […]

Thumbnail

Employer iPMI responsibilities could continue to escalate, says Jelf

New laws in Dubai will put the burden of providing international private medical insurance (iPMI) firmly on the shoulders of the employer in order to maintain the country’s leading healthcare facilities. With 10,000 UK nationals having moved to the country since 2007 and only 16.5 per cent of the total 8.2 million people living there being Emiratis, Jelf Employee Benefits believes this move was inevitable and employer responsibilities could continue to escalate in future.