Nationwide's predictions for housing market in 2008. Whoops.

6 January 2009

God bless the kids with nothing better to do than rummage through old videos of news bulletins and slap captions from today's news all over them. Especially when they highlight the ludicrous predictions of a national banking institution. Northern Rock had already gone bust and everyone's spidey-sense was already tingling, yet at the end of 2007, Nationwide did their bit to inject confidence into the flagging housing market. "Wide of the mark" doesn't quite cover it:

TOPICS:   Economy


  • Will
    What a mockery.
  • Bob
    I think the "sucking millions of first time buyers into a property bubble" is a bit of a misnomer, did these people have no free will? Presumably Nationwide didn't go round their rented property and badger them into getting a mortgage, they approached Nationwide surely? Sounds like whoever did the video is very bitter that they're now in negative equity to the NW, as far as I'm aware Nationwide would only offer mortgages of 3x salary which is more than can be said of most banks.
  • Paul Nikkel EDITOR
    With some proper editing and a few images that could have been a great video. Good concept and points but missed the mark on execution.
  • SimbaK2K
    Thats a bit harsh. They didn't force anyone to take a mortgage, reduced their rates of interest when the BOE did, and are overall already one of the cheapest providers. Besides, they gave me a mortgage and I'm more then happy to keep with it, the alternative? Money down the drain renting!
  • no1knows
    money down the drain renting is better than 10x that amount of money down the drain over the course of the year in the value of your property :P
  • no1knows j.
    So renting and paying someone elses mortgage and not owning jack afterwards coughing up all that gives you more than buying your own home that will appreciate in value. hmmm thats an interesting concept.
  • doober
    The housing market is nationwides fault? interestimg, was this posted by alaistair darling? Think you can lay the blame at only one persons door, the door being no.10. all gordons brown fault, gone are the days of boom and bust, what an idiot, we have just seen the biggest boom ever in this country, now prepare yourseklves for the biggest and longest bust in history.
  • doober
    i too am gutted about paying a mortgage, wish i was renting.dont know what i am going to do with the 100k equity i have in my house.
  • Juan K.
    To be fair to Nationwide they are the only mortgage company I've ever dealt with who've been competant and not a bunch of sharks or idiots. They also have pro-actively given me mortgage advice which was to my financial advantage and not to feather their own nest.
  • crown
    Ok Ok so it is a bit harsh to rake up an old prediction and show what a load of rubbish it was, but the point I am making is this Nationwide were predicting a flat-ish market shortly after Northern rock has gone bust and the credit crunch had started. First time buyers who are ultimately responsible for their own actions are making decisions based on future expectations of house prices. Nationwide were offering 4.25 times joint salary and if you had enough of a deposit they were not bothering to check that you earned that income. Nationwide were predicting a benign housing market at a time when house prices were already falling. With forecasts this bad why listen to them in future?

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