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- October 2008
Harpenden Building Society helps put Radlett school in the shade.
- Harpenden Building Society (HBS) is a top 50 ranked UK Building Society with over 95% of its funding provided direct from members and customers. In 2008 HBS has won two prestigious awards for their savings and mortgage facilities and now claim over 18,000 members.
For many years the playground at St John’s School in Radlett has baked in the sun and whilst soaring temperatures have not been a major problem this summer, it has caused problems for pupils over the years on hot summer days.
Parents and Friends of St John’s have raised over £11,000 by organising a number of fund raising events, and this along with a separate charitable donation of £11,000 from HBS has provided the school with a dual purpose wooden outdoor classroom which also acts as a sun shade in the summer. In addition there is a large play fort, climbing wall and a whisper corner surrounded by beautiful flowers and shrubs.
HBS Radlett Branch Manager Pauline Wright said “It is wonderful to be able to assist local schools in our community.”
HBS Charitable Trust focuses on supporting children and youth projects in the region. For further details of the HBS Charitable Trust or how HBS assist both private and corporate clients with a range of investments and tailored mortgages, please telephone Harpenden Building Society on 01582 765411. - September 2008
Charity with a local dimension.
(Published in Hertfordshire Countryside)- August 2008
Time to blow the dust off your old current and savings accounts.
(Published in Hertfordshire Countryside) - August 2008
- In mid 2009 a new Government scheme is planned that identifies money in dormant or lost accounts and hands it over to good causes. Initially, this may sound a bit alarming but Paul Marsden, Director and Chief Executive of Harpenden Building Society, examines how the new scheme will work and the implications for savers.
Estimates suggest building societies have accounts worth around £150million that could be called “lost” or “dormant”. The banks hold about £350-£500million and National Savings a further £440million. These funds are held in accounts that have not been touched for over 15 years and since 2006 the Treasury has been looking at ways to release the money and make it available to good causes. The Dormant Bank and Building Society Accounts Bill has been introduced to the House of Lords and the new scheme is expected to go live in mid 2009.
Lost or Dormant?
A typical “lost account” is quite easy to define as it tends to have post returned “addressee unknown” and is immediately flagged by banks and building societies to stop confidential information being sent out. “Dormant accounts” are a grey area and typically the person knows perfectly well where their money is but has not touched it for many years. Building societies have a large proportion of dormant accounts because, as savings institutions, people make deposits such as inheritance for long term safe keeping. There are also a number of dormant accounts which were opened in the 1990’s by people hoping to profit from demutualisation – the so called “carpetbaggers”.
I am pleased to report that special allowance is to be made regarding child trust funds and other types of accounts with fixed term maturities, when the 15 year rule starts at the end of the term. For example, grandparents might invest a lump sum for a grandchild at birth in an account such as our 18 Club account and there may be no interaction with the account until 18 years later, therefore the 15 year rule would not start until the account matured when the child reached 18.
The plan in 2008 is for financial institutions to focus on these lost or dormant accounts to identify those that are genuinely lost rather than merely dormant. Once this process is complete the funds left will be handed to a central organisation for distribution to good causes.
Funds are protected
So I can hear you asking, what happens if, in a few years time, I discover one of these lost or dormant accounts or in the case of inheritance, an account has been identified by the executor of the estate? The good news is that you will be entitled to the funds, with interest and this will be paid back to you by the “Central Reclaim Fund”.
In the meantime, the 42 banks, 59 building societies and NS&I scheme (covering all national savings and investments as well as old Post Office Savings Bank accounts) have introduced a single website which helps savers check if any of their accounts are considered lost or dormant. You can check for free by logging onto www.mylostaccount.org.uk. The site also includes details of banks or building societies that are no longer trading. In addition, the building society section of the website enables a search of accounts younger than 15 years. If access to the internet is difficult, paper based searches can be carried out by the British Bankers Association, the Building Societies Association and NS&I.
In a further development, membership rights will not be lost if the money was held in a mutual building society account.
Which good causes?
The concept is to use these funds for good causes and many national organisations and charities will benefit. However, as building societies tend to have very strong links with the local community and local charities, the new act enables 51 of the 59 building societies to use an alternative scheme to support good causes in their local communities. I welcome this as Harpenden Building Society has supported local charities for many years and this funding will come as a welcome boost. So, there is no need to be concerned. Take some time to dust off those old files and if you feel you or a relative may have an old account it has never been easier to check the status by logging onto www.mylostaccount.org.uk.
Harpenden Building Society has branches in Harpenden, Radlett and Leighton Buzzard. Tel: 01582 765411 or visit Harpendenbs.co.uk - August 2008
A Case of “Credit Where Credit’s Due”? - In a few short months sub-prime mortgages, wholesale money markets, financial instruments and credit crunch have all entered into the mainstream of our conversations. Paul Marsden Director and Chief Executive of Harpenden Building Society explains what local business leaders need to understand about the current financial market.
Over the years, we have become familiar with the Bank of England (BOE) base rate which had a direct effect on mortgage payments, rates paid to savers and loans to individuals and organisations. This rate is set by the Monetary Policy Committee (MPC) of the Bank of England. However, the rate at which banks borrow money between themselves has always been based on the “London Interbank Offered Rate” known as LIBOR. Historically LIBOR has hovered around the BOE base rate but the traditional link between BOE base rates and LIBOR has been shattered.
LIBOR The New Base Rate?
If we look at the private and commercial mortgage market, the last significant change occurred when the traditional building societies converted to banks. At a stroke, the more lax regulation for these new banks meant that lending was no longer closely linked to savings deposited. Rapid expansion of mortgage lending followed but depended on a flow of money market funding to fuel the business.
Northern Rock was one such ex-society who, as a bank, borrowed up to 74% of its requirements on the Wholesale Markets. By contrast, building societies cannot by law borrow more than 50% - the current sector average is around 30%. At HBS less than 5% of our funding comes from these markets.
The future?
Over recent months there has been a move by both borrowers and investors back to the traditional building society and February 2008 saw deposits in excess of £1.3bn against £700m for the corresponding month in 2007.
So credit where credit’s due? If you have a good case, societies such as HBS have the resources to lend so don’t let the headlines put you off calling.
Harpenden Building Society has branches in Harpenden Radlett and Leighton Buzzard. Ring 01582 765411 or visit www.harpendenbs.co.uk - June 2008
Financial Update: Will The Credit Crunch Send Us “Back to the Future”
(Published in Life Series) - Sub-prime mortgages, wholesale money markets, financial instruments, credit crunch. Less than a year ago these phrases would have meant little to most people. However in a few short months they have entered into the mainstream of our conversations. Paul Marsden Director and Chief Executive of Harpenden Building Society explains that savers and borrowers need to fully understand what could become a seismic change in the financial market.
In April, the Government announced a £50bn support package to help unclog the financial markets. Will it work? Well the jury is out – there are those that suggest that this is too little too late and others who feel that a major structural change has occurred that will rewrite the rules for years to come. I suggest that to understand what is going on we should start with a basic grasp of the LIBOR market.Over the years, we have become familiar with the Bank of England (BOE) base rate which had a direct effect on mortgage payments and the rates paid to savers. This rate is set by the Monetary Policy Committee (MPC) of the Bank of England. However, the rate at which banks borrow money between themselves has always been based on the “London Interbank Offered Rate” known as LIBOR. This rate is set by pure supply and demand and historically has hovered around the BOE base rate. I say historically, because currently the traditional link between BOE base rates and LIBOR has been shattered.
LIBOR The New Base Rate?
Today, the higher perceived risk in the financial markets has seen banks borrowing from each other at significantly higher rates than the BOE base rates. Broadly speaking, banks who borrow from the money markets stand to make a loss if they issue mortgages or loans at or around current BOE base rates. This is because the interest rate at which they secured their funds, (LIBOR), is significantly higher. So for the time being, LIBOR may have more influence over your finances than the traditional BOE base rate.
Why LIBOR Has Become So Important
The last significant change in the mortgage market was when traditional building societies converted to banks. The benefit to the ex-building societies was greater access to the wholesale money markets. At a stroke, mortgage lending was no longer closely linked to savings deposited. This allowed rapid expansion of their mortgage lending but created a model that required a flow of money market funding to fuel the business.
Northern Rock was one such ex-society who, as a bank, borrowed up to 74% of its requirements on the Wholesale Markets. By contrast, building societies cannot by law borrow more than 50%, and across the sector the current average is around 30%. At HBS less than 5% of our funding comes from the wholesale markets.
Back to the future?
Over recent months there has been a move by both borrowers and investors back to the traditional building society. Gross investments have been at record levels. For example February 2008 saw deposits in excess of £1.3bn against £700m for the corresponding month in 2007 – a sign of the confidence the investing public have in the traditional model.
We should remember however, that the wholesale market funding model remains robust but with a cautious approach. What is key for all financial institutions is their ability to match consumer and corporate investments with the corresponding requirement to fund mortgages.
Harpenden Building Society has branches in Harpenden Radlett and Leighton Buzzard. Ring 01582 765411 or visit www.harpendenbs.co.uk - June 2008
New agency office in Stopsley, Luton - Harpenden Building Society (HBS) is a top 50 ranked UK Building Society with over 95% of its funding provided direct from members and customers. In 2008 HBS won two prestigious awards for their savings and mortgage facilities. The Society is further expanding their northern Home Counties presence with the opening of a new agency office in the Luton area.
In conjunction with DWR Sales & Lettings, an established residential sales and lettings agency, HBS will be opening their latest agency office at 599 Hitchin Road, Stopsley LU2 7UW. The new agency office is designed to serve the needs of the local community, on their doorstep and will officially open on Monday 30th June 2008.
Commenting on their latest expansion, Paul Marsden, Director and Chief Executive of HBS said: “We have always tried to maintain a presence within the Luton area, and until the retirement in 2006 of the owner of Burgess Gifford Estate Agents, operated an agency office in Sundon Park. We were delighted when DWR approached us with the proposition of operating an agency office from within their premises, especially as they demonstrate the same values and principles that we believe in. They have provided the community with a savings, investments and mortgage service for over 10 years and now with the assistance of HBS will continue to do so.
”Angie Morris, Sole Proprietor of DWR Sales & Lettings added: “As a business we continue to be ideally placed to serve the needs of the wider Stopsley community for both their residential and financial requirements. Working with HBS will allow us to continue to provide this service. The synergy between our two organisations is clear and we will be proud to offer the full range of HBS savings, investments and mortgages.”
For further information, please telephone Harpenden Building Society on 01582 765411. - June 2008
Harpenden Building Society – Announce Appointment of New Chairman - Harpenden Building Society (HBS) is a top 50 ranked UK Building Society with over 95% of its funding provided direct from members and customers. In May 2008 HBS won two prestigious awards for their savings and mortgage facilities and now claim over 18,000 members.
Announcing the retirement of HBS Chairman Roger Smith the Society confirmed that Michael Willis, current HBS Vice Chairman was appointed to the post in May 2008. HBS Chief Executive, Paul Marsden commented; “Roger has been a Director of HBS since 1981 and Chairman since 1999. Since he joined the society we have seen its assets rise from around £8m then to approaching £160m today. He leaves HBS with strong foundations to further develop”.
New Chairman Michael Willis joined the HBS board in 1993 and was appointed Vice Chairman in 2000. On his appointment as Chairman, he said; “ HBS is in an excellent position, with a strong balance sheet, growing membership levels, record investment and at a time when the building society sector as a whole is receiving record sums from savers and investors. Our challenge will be to ensure we continue to develop the society for the benefit of all our members”
For further details on how HBS is able to assist both private and corporate clients with a range of investments and tailored mortgages, please telephone Harpenden Building Society on 01582 765411. - June 2008
Harpenden Building Society announce the appointment of two new Non-Executive Directors - Harpenden Building Society (HBS) is a top 50 ranked UK Building Society with over 95% of its funding provided direct from members and customers. In May 2008 HBS won two prestigious awards for their savings and mortgage facilities and now claim over 18,000 members.
Following the recent appointment of Michael Willis as Chairman the society are pleased to announce the appointment of two further Non-Executive Directors to further strengthen and develop the Board in the key areas of corporate finance and marketing.
Hugh Titcomb is currently Group Chief Executive of Ansbacher Group a specialist banking group employing 400 staff worldwide. Hugh brings with him extensive knowledge and experience gained across a wide range of UK and international financial institutions. Commenting on his appointment Hugh said: ”I believe that my broad financial experience across a range of key disciplines will help ensure that our society continues to develop for the benefit of our members. At the same time I want to ensure that we continue to support and extend our presence in the community where I live”.
Kate Wilson is an independent business consultant with in-depth strategy, marketing and business development experience gained across a wide range of FTSE and SME businesses. Commenting on her appointment Kate said: “I was looking for an opportunity to utilise my commercial skills for the benefit of the local community where I live. I believe that I will be able to help our Society further expand whilst maintaining its strong local traditions and presence.”
For further details on how HBS is able to assist both private and corporate clients with a range of investments and tailored mortgages, please telephone Harpenden Building Society on 01582 765411. - May 2008
2007 Financial Summary Shows over 8% Growth in Total Assets -
Harpenden Building Society (HBS) is a top 50 ranked UK Building Society with over 95% of its funding provided direct from members and customers. In 2007 HBS won two prestigious awards for their savings and mortgage facilities and now claim over 18,000 members.
HBS recently published its Summary Financial Statement for year ending 31st December 2007. Within the 12 page report and against a background of difficult trading conditions, Chairman Roger Smith was able to highlight the strength of the Society’s balance sheet and assets. These included the following year on year growths:
Total Assets increasing by over 8% to £158.2 million
Gross lending exceeding targets rising to £42 million, a 12.7% increase
Shareholder investments growing by £10.8 million to £132.7 million, an 8.9% increase
Share and deposit balances growing by 7.9% to £146m
He noted that there had been a “flight to quality” amongst investors and the building society sector as a whole had seen some record investment flows. He also announced that financial stability has also been supported by maintaining levels of liquidity above usual operating levels to provide the security HBS members require.
Additionally, HBS confirmed that at the year end they did not hold any wholesale money market funds.
For a copy of the Summary Financial Statement and further details on how HBS is able to assist both private and corporate clients with a range of investments and tailored mortgages, please telephone Harpenden Building Society on 01582 765411. - April 2008
Tax FREE savings made simple - The Government has made significant changes to TOISAs, PEPs and ISAs. Paul Marsden, Director and Chief Executive of Harpenden Building Society highlights the implications for local business leaders who wish to maximise their personal tax free savings allowances.
ISA – The Name You Need to Know
In an effort to simplify tax free savings, the Government has made significant changes to TOISAs, PEPs and ISAs (Individual Savings Accounts).
Following April 6th 2008 there will be two much simpler ISA products, namely a “Cash ISA” and a “Stocks and Shares ISA”. The maximum you can invest each year has also been raised from £7,000 to £7,200 for the tax year 2008/09. Current ISA, TOISA and PEP’s should be automatically converted to the relevant new ISA’s.
Cash ISA
If you wish to earn a tax free return on your cash you can invest up to the upper limit of £3,600 in a Cash ISA.
Stocks and Shares ISA
Using your full ISA allowance you can invest up to £7,200 in a Stocks and Shares ISA but bear in mind that this erodes your Cash ISA allowance.
Investing in Both
So, if you wish to invest in both a Cash ISA and Stocks and Shares ISA you can do so up to the £7,200 limit. Here are some potential examples:
£3,600 to a cash ISA (maximum) and £3,600 to a Stocks and Shares ISA
£2,000 to a cash ISA and £5,200 to a Stocks and Shares ISA
£nil to a cash ISA and £7,200 to a Stocks and Shares ISA
Wider Choice of Providers and Improved Rates
Under the old regime, a Maxi ISA with cash and stocks and shares components had to be with the same provider. Now, the two parts can be separated and invested with different providers allowing the flexibility to choose the provider that works best for your investments.
Harpenden Building Society has a track record providing very competitive TESSA ISA interest rates with consistent appearances in published “best buy” tables. Our “Simply ISA” (Cash ISA) has been improved so it now matches the previous higher TESSA ISA rate, and the 28 day notice period previously applicable to the TESSA ISA will no longer be required.
So along with the range of tailored commercial and residential mortgages and award winning savings and investments, the new improved Simply ISA is another very good reason to talk to HBS, your local building society.
