MSE Northern Rock comment

IMPORTANT UPDATE: There is now a full Northern Rock Crisis: What to do now guide




Hi folks, Martin's not around but I thought you might like to see the comment we send around earlier today.






[SIZE=-0][FONT=Arial, Helvetica, sans-serif]Commenting on the Northern Rock borrowing crisis, Martin Lewis, creator of consumer revenge website MoneySavingExpert.com, says:[/FONT]

[FONT=Arial, Helvetica, sans-serif]Northern Rock customers, don’t panic! There’s no need to take your savings out … but it’s not a bad idea[/FONT]

[FONT=Arial, Helvetica, sans-serif]“People queuing outside Northern Rock to withdraw savings need to calm down. Firstly, it’s enormously, unthinkably unlikely the bank will go bust. Yet even if it does, all savings up to £35,000 are protected by the Financial Services Compensation Scheme, which means the first £2,000 of your savings are protected and 90% of the next £33,000 are.”[/FONT]

[FONT=Arial, Helvetica, sans-serif]“However, almost all of Northern Rock’s savings rates can easily be beaten by the best buys on the market anyway. So this is a good occasion for people to check their rates and ditch and switch to earn more elsewhere. Yet withdrawing large amounts in cash and carrying it around isn’t sensible; an electronic transfer is much safer.”[/FONT]

[FONT=Arial, Helvetica, sans-serif]What this means for all borrowers: personal loans and new mortgage costs are likely to rise[/FONT]

[FONT=Arial, Helvetica, sans-serif]“There’s a shortage of funds for borrowing, which means prices will go up. Existing loan and mortgage holders on special deals won’t be affected, yet those looking to get a new loan or mortgage rate should act quickly. The quarter of a million people whose fixed rate mortgage ends in the next three months should act immediately; there’s nothing wrong with sorting and agreeing your mortgage now, even if you don’t need it until December.”[/FONT]

[FONT=Arial, Helvetica, sans-serif]Remortgage guide note: People can get a free printed 30 page step-by-step remortgage guide from www.moneysavingexpert.com/remortgageguide[/FONT]
[/SIZE]