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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.”


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