Building society confident of future

CUSTOMERS of the Ipswich Building Society have today been assured that their money is in safe hands.Despite the announcement that Derbyshire and Cheshire Building Societies have been taken over by Nationwide due to the current economic climate, Ipswich Building Society insists it is in a strong position.

CUSTOMERS of the Ipswich Building Society have today been assured that their money is in safe hands.

Despite the announcement that Derbyshire and Cheshire Building Societies have been taken over by Nationwide due to the current economic climate, Ipswich Building Society insists it is in a strong position.

Paul Winter, its chief executive, said: “We are in a very strong position. We have got a good flow of funds coming from members and very strong capital. Mortgage arrears is very strong too.

“The Derbyshire and Cheshire Building Societies are quite a lot bigger than us and they are different in the way they are structured.

“We look forward to an independent future.

“We have done very well on mortgages this year. Because of the problems with banking, people seem to be turning to building societies.”

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Both boards of the Derbyshire and Cheshire Building Societies decided to merge with Nationwide as both have been hit hard by the credit crunch, which has restricted their access to money market funds.

The Derbyshire, the 9th largest building society, was set to announce a £17m loss for the first six months of the year as a result of a range of defaults on higher risk and commercial loans.

The Cheshire, the 11th largest building society, has been rocked by a single loan for £11.5m turning sour.

How is the credit crunch affecting you? Write to Your Letters, Evening Star, 30 Lower Brook Street, Ipswich, IP4 1AN, or e-mail eveningstarletters@eveningstar.co.uk