A couple of years ago, whilst working in the mortage end of the bank (within a sales retention team), I wondered why we weren't offering the best deals in the market. Why were we passing on the buy to let, 100% (and more frightingly 110%) mortgages, or higher risk borrowing that so many banks were eager to gain? It made my job harder, knowing someone was leaving the bank to chase a better rate with Northern Rock (now nationalised to prevent it going bust).
Instead we took a prudent approach, and right now it's paying off.
I'm glad some banks are a bit more risk averse as opposed to Charles Prince III, the former CEO of Citigroup. A quote from him in 2007 (before he was replaced): "When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you've got to dance. We're still dancing."
