It might save you money but does the mortgage price war spell trouble in the future?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 24 May 2019

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

The mortgage price war claimed a high profile victim this week as Tesco Bank scrapped lending.

A great adventure into the world of banking - billed as a major challenge to the High Street banking giants with mortgages promoted in the aisles – has come to an end.

Tesco Bank will continue with its other products, but why has it ditched mortgages, why have a string of other smaller players shut their doors in recent months, and why did building society behemoth Nationwide issue its own caution on home loans this week?

On this week’s podcast, Simon Lambert, Sarah Davidson and Georgie Frost dive into what is currently a weird world of mortgages: where a greater supply of money to lend than demand to borrow it means there are some very cheap deals on offer.

They also look at whether this may end up causing problems further down the line and ask how long it will be before more risky lending edges back in.

Also on this week’s show, the team look at a reader’s problem with a neighbour upstairs, who has stripped the floor back to floorboards and is creating noise issues, despite a lease that says there must be carpets. How do you enforce that?

Thomas Cook’s troubles and what they mean for holidaymakers are under the spotlight too.

And finally, ever wondered why sometimes drivers get a ticket but at others escape with just a warning, or what really drives police officers mad behind the wheel?

You need to listen to the segment on the secrets of a traffic cop revealed.

Transcript

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0:00.0	Welcome to This Is Money in partnership with MS and I.
0:04.0	I'm Georgie Frost and joining editor Simon Lab and I today is Knowledge and Product Editor Sarah Davidson.
0:09.5	And coming up, the Mortgage Price War claims another casualty as Tesco scraps lending while nationwide's blaming it on a profits fall.
0:18.0	What's going on and where's it all heading?
0:20.3	Talking of which Thomas
0:21.3	Cook customers increasingly wide that they, well, are heading nowhere. It's after the holiday
0:25.8	company's share price plummeted and they issued their third profit warning in less than
0:31.0	a year. Should we be concerned? We also talk about noisy neighbours. Is there anything you can
0:36.0	do about them, legally, I mean? And we
0:38.4	reveal the secrets of a traffic officer, what really makes them tick and what really ticks them off.
0:43.7	Don't forget you can stop today. With all the latest breaking money news, just go to this ismoney.com.
0:47.5	UK or download the app.
0:50.1	This is Money brought to you in partnership with NS&I premium bonds.
0:59.9	Now you can start saving from just £25, millions of tax-free prizes every month.
1:05.6	The first, Tesco Bank has confirmed it's closing the door on new mortgage lending.
1:09.9	The supermarket giant's fully owned bank is blaming challenging market conditions.
1:11.7	It's now looking to sell its mortgage book,
1:19.9	having previously lent out about £3.7 billion to more than 23,000 customers. So what happens to them and what next for the Challenger Bank? Is this the start of a trend? Well, Tesco banks say we've made
1:26.5	the strategic decision to focus on serving a broader
1:29.6	range of customers in more specific areas.
1:33.8	Hmm.
1:34.5	Sarah, what does that really mean?
	...

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