Northen Rock [Merged Threads]

Mine's_a_guinness

Channelman wrote: »

I can confirm that IT IS POSSIBLE to get onto internet based accounts.
I've just got in at 15.45 today (15th). I just kept trying and after about
20 or so attempts it did let me access my account and transfer money.
I tried overnight at 1.30 am and 5.30 am and since it said BUSY I assumed
that it had been blocked but doesn't look like it.
Persevere, it is possible.
Channelman

Better still, leave your savings where they are. Don't forget, if your money was in an ISA, withdraw it now and you won't get the tax free status of that money again. It is the media hype that will lose you money, not Northern Rock.

BTW this wasn't a dig at you Channelman, I know a lot of people are advocating the same, it's just yours was the nearest comment.

Jem8472

I like the story about the guy trying to withdraw his million pounds.

Like you can just walk into any bank and ask for your million quid and they will hand it over. If this had been another situation he would not have been going to the media about it.

melbury

caveman38 wrote: »

Thanks, I just wanted reassurance. I have more invested than the safety net would compensate for. I do not want to withdraw my money which is in a bond as it would lose a lot of interest as a penalty. The problem is just being an ordinary joe public and seeing that the local SE branches (which there a only a few) were open till 8 last night and today have extended their hours because there is again a 2 hour queue.
It does start to make you think come Monday you may be the only saver left - I know that's daft, but I'm only human.

I am in the same position as you caveman - two fixed rate bonds that don't mature for another six weeks or so and over the safety net for compensation. Bit scared, but trying to remain confident!

I don't know what the situation is with fixed rate bonds - can you actually withdraw the money before the maturity date? I am sure lots of people will be upset if it is all a storm in a teacup and they have lost loads of interest for nothing. But then again I can't afford to lose a big chunk of my life savings. Trouble is I think that if NR went down, others would start falling like ninepins and so where do you put your money, which bank/building society is absolutely safe? Also of course, Gordon has promised that my money will be safe!

alared

After three days of trying,I finally got through this afternoon at about 3-55pm.
I`ve been getting the "this is busy" page constantly but kept trying and got there in the end.
So don`t give up.

Channelman

Mine's_a_guinness wrote: »

Better still, leave your savings where they are. Don't forget, if your money was in an ISA, withdraw it now and you won't get the tax free status of that money again.

My money wasn't in an ISA, just a Silver Saver Account. All I have to
loose is the interest during the transfer time to my bank and then elsewhere
to another high interest saver with instant access.
I used the account as my emergency fund to swap the car, holdays etc
and to not have access to it would have been awkward for me.
I wouldn't want to break into S&S ISAs, Cash ISAs, National Savings etc
since these would all have penalties.
Channelman

caveman38

Melbury. I have contacted NR and you can surrender the fixed rate bonds early. Penalties for doing so are loss of 60, 90 or 120 days interest for 1, 2 and 3 year bonds respectively. You can go to a branch if you're lucky enough to live near one (my nearest is Chelmsford, 30 miles away but they do not have the facility, but I can go to Bromley Kent and wait 3 hours and get the cash). Alternatively you can DL a form off their site and post it.
The thing is say you have £40k invested in a 3 year bond. You start to weigh up the different scenarios.
1. Everything returns to normal. No loss.
2. NR is taken over assets and liabilities by another bak. No loss (hopefully)
3. NR go bust and you apply for the FSA safety net. Loss £10.3K
4. You cash in the bond early. Loss of interest £690 (assuming 5.25%)

I've decided to stay put, hoping for 1 or 2.

lapat

just a quick question what would happen if you had a loan/mortgage outstanding with them and if say they did go bump and you defeaulted on the loan/mortgage i.e cancelled the payments what would happen anyone any ideas....?

Optimist

lapat wrote: »

just a quick question what would happen if you had a loan/mortgage outstanding with them and if say they did go bump and you defeaulted on the loan/mortgage i.e cancelled the payments what would happen anyone any ideas....?

It would be no different than if you defaulted on your mortgage currently you would loose your house ! The mortgages are part of the assets of the company and would be sold on to who ever buys the company or its assets

Not what you want to hear I bet!

Jem8472

lapat wrote: »

just a quick question what would happen if you had a loan/mortgage outstanding with them and if say they did go bump and you defeaulted on the loan/mortgage i.e cancelled the payments what would happen anyone any ideas....?

I am guessing if NR did go t*ts up then some other bank would buy their debts for a fraction of what they are worth. So you would just owe money to another bank.

Thats what I think, am I right?

I have a NR mortgage as well but TBH I am not too worried about this. Maybe apart from all the panic withdrawal of money people are doing at the moment. Could cause more problems to NR. But hey I am no expert.

bluegrover

A quote from the BBC:

Hugh Hendry, of hedge fund Eclectica Asset Management, said that the industry had come to realise this year that investors were becoming unwilling to loan such institutions money - which then caused financing difficulties for banks like Northern Rock.
He told BBC Radio 4's Today programme: "When you see yesterday reassuring comments from [Chancellor] Alistair Darling and from the various executives in these banks, they are speaking with forked tongues.
"To me they are saying, 'Hey, listen, we have got great difficulties.' To depositors they are saying, 'No, we don't have difficulties.' "They have to make their minds up - one of those comments is true and one of them is false."

i think that says it all.