Northern Rock

#1
I'm waiting for the News to report a 10000000000000% increase in muggings out side Northern Rock Branches as all the coffin dodgers withdraw their life savings. :twisted:

The media are a bunch of cnuts for spreading terror and doom :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted:
 
#2
I was just watching that on the telly and thinking that could be the answer to all my prayers :)

I have my Mortgage with Northern Rock so should be interesting to see what happens in the future, I am trying to remortgage at this very moment and they have gone all quiet on me.
 
#3
Ozzymick said:
I was just watching that on the telly and thinking that could be the answer to all my prayers :)

I have my Mortgage with Northern Rock so should be interesting to see what happens in the future, I am trying to remortgage at this very moment and they have gone all quiet on me.
Ski mask, a fast car, a swag bag and a list of all the NR branches in your area and your money worries will be over. :D
 
#5
All those ignorant gits taking their money out. In global terms this short term lack of liquidity is just a blip.

If they keep taking money out, share price will drop and a foreign investor will end up owning another British financial institution: for a song.

In two years time they will have made a mint with their speculation

Hold the line!! Keep your money IN, keep the fat-cat specualtors OUT!Keep Northern Rock a British institution and keep jobs in an 0191 area code, as opposed to Mumbai
 
#6
Ozzymick said:
I was just watching that on the telly and thinking that could be the answer to all my prayers :)

I have my Mortgage with Northern Rock so should be interesting to see what happens in the future, I am trying to remortgage at this very moment and they have gone all quiet on me.
What does it mean for Northern Rock mortgage holders?

Mortgage holders will still have to keep up their payments and the bank will not recall any mortgages. But interest rates will probably rise for those not on a fixed-rate deal.

If you are on a discount or tracker product it's likely you will end up paying a lot more. Northern Rock will no longer be in the business of offering cheap remortgages and may be forced to raise its standard variable rate.

Borrowers can always remortgage to an alternative lender, but expect to see lending criteria tighten sharply across the board. If you were a borrower who took a 125% Together loan at Northern Rock, there won't be many other lenders willing to take you on.

http://business.guardian.co.uk/story/0,,2169609,00.html

msr
 
#7
LordVonHarley said:
I'm waiting for the News to report a 10000000000000% increase in muggings out side Northern Rock Branches as all the coffin dodgers withdraw their life savings. :twisted:

The media are a bunch of cnuts for spreading terror and doom :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted:

You are 100% spot on. I was in the City centre just now and there was a long queue snaking out of the NR branch. Almost all of them were what you call 'coffin dodgers'.
 
#8
Im not going to flap, in the grand scheme of things happening in my life at the moment this is miniscule.

Just been doing some research and it looks like I will be fine. Just going to keep harrassing them about this remortgage so I can get my payments down and fixed.

Not long now it has already been agreed its just the paperwork trail to get sorted
 
#9
Just a quick tip, NR shares were down 200p yesterday to around £4 if you have money in the stockmarket they are well worth a go, the share price wil more than likely recover in the next month or so as all the major creditors recover after the little credit crisis caused by american mortgages and institutions not knowing where there money was.... someone is going to make a killing on NR and others like it!!
 

Sixty

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Moderator
Book Reviewer
#12
LordVonHarley said:
Just checking the London Stock Exchange for the NR prices. Could be a goo time to buy.
438p as at close of trading on Friday.
 
#13
It's handy for the meeja to be blaming this on the American sub-prime market but I fail to see how this is causing anyone any real problems. I can't cite a source because I saw this on one of the business programmes they have on weekend mornings here in the States. The gent was saying that of all mortgages in the USA only about 12% were of the sub-prime type. Of those 12% only 10-12% were in trouble, (the borrower was no longer paying the payments).

So, what do we have? Effectively one percent of all mortgages have defaulted due to the sub prime affair. So how does a company like Northern Rock have such a sudden huge problem?

One of three things is occurring:-

1. Either Northern Rock has other issues that have been exacerbated by the sub prime affair,

2. Or, Northern Rock is so badly mismanaged that it placed significantly more that 12% of it's assets to fund sub prime mortgages, (despite the number one rule of diversification), and is now suffering the consequences of such gross mismanagement,

3. Or, there isn't much of a problem because banks often borrow from one another but because there's a "crisis" in the industry the meeja are relating the two and making a story where there is none to sell copy.

I know where my money is if we are going to bet...
 
#14
From what I understand of the situation is NR borrows money from Bank X, Y, Z at a low rate, then lends it at a higher rate and makes a profit.
Banks X,Y,Z no longer want to lend to NR in the same way/same rates etc. NR asked The Bank of England to lend it money so it can continue lending money.
NR is Asset super rich but cash poor at the moment.
 
#15
In effect it wasn't the actual mortgages or defaults ti the sub-prime mortgages that caused anysort of problem, it was more the uncertainty that was created by banks etc. not knowing which companies they had money in so that when stuff stated to go (minorly) wrong the markets paniced as they could not be sure exactly where there money was, and whether they were effected by the changes. It basically boils down to various institiutions overly sub-contracting there money, therefore when the shit hits the fan they don't know where their investors money is and it is this uncertainty that creates the drop in the market, but due to the little fiasco across the pond you can be sure that the banks etc. will not run this risk again. (i am being very sarcastic of course)
 
#16
jack04040 said:
but due to the little fiasco across the pond you can be sure that the banks etc. will not run this risk again.
HAHAHAHAHAHAHAHAHA!!

msr
 
#17
The people panicking and withdrawing their money are only doing so because they haven't a clue how the system works. I'm not pretending to be a banking oracle myself but i know enough to realise that people with accounts aren't in trouble. Your first £3000 is fully insured anyway, so if you have £3000 or less then it's impossible for you to loose any of your money!
The only thing causing NR big problems is the media going crazy and scaring people into withdrawing all their money.
The people who closed their accounts will be really gutted if NR is bought out and they miss out on a few hundred quid of merger bonus!
 

Sixty

ADC
Moderator
Book Reviewer
#18
Bisley_Bob said:
The people panicking and withdrawing their money are only doing so because they haven't a clue how the system works. I'm not pretending to be a banking oracle myself but i know enough to realise that people with accounts aren't in trouble. Your first £3000 is fully insured anyway, so if you have £3000 or less then it's impossible for you to loose any of your money!
The only thing causing NR big problems is the media going crazy and scaring people into withdrawing all their money.
The people who closed their accounts will be really gutted if NR is bought out and they miss out on a few hundred quid of merger bonus!

Not quite. The first £2000.00 is covered and 90% of the next £33000.00.
 
B

Biscuits_AB

Guest
#19
LordVonHarley said:
I'm waiting for the News to report a 10000000000000% increase in muggings out side Northern Rock Branches as all the coffin dodgers withdraw their life savings. :twisted:

The media are a bunch of cnuts for spreading terror and doom :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted: :twisted:
Geordies man. Ye canna trust the bastidz.
 
#20
LordVonHarley said:
From what I understand of the situation is NR borrows money from Bank X, Y, Z at a low rate, then lends it at a higher rate and makes a profit.
Banks X,Y,Z no longer want to lend to NR in the same way/same rates etc. NR asked The Bank of England to lend it money so it can continue lending money.
NR is Asset super rich but cash poor at the moment.
Yep, that's about the long and short of it. It's a sort of cash flow problem. The sheeple are easily panicked and don't bother listening to the advice that has been plastered all over the media.
 

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