Should I close my Northern Rock Account?

Fedz

jerryl wrote: »

I do not think its up to you to tell people what and when to speak.Shares go up,shares go down.(that is what they do.)

All are entitled to share our opinion (a bit like you have here).

Indeed shares (obviously) go up/down but, it's how you interpret these ups/downs - everyone interprets different - that's how the money market works and why people buy/sells shares ...

iltisman

I wonder whether this site does more harm than good, I mentioned the negative comments about NR to a couple of mates in the pub and a week later we had withdrawn best part of half a million. If this is multiplied by the number of people looking at this site no wonder NR are short of cash.

darktrader

Fortunately, I don't have any funds in NR. If I did, I would be withdrawing them this morning via a branch rather than the Internet.

This would not be because I think they will go bust but because I am a cautious saver and, despite the assurances of all manner of "experts" the one phrase that keeps popping up in various programmes about the wider "loan" problems and credit crunch is, "this has never happened before..."

In any Market where there is a never-before-seen event or series of events uncertainty and, possibly panic, can take hold.

I have my cash savings spread over three accounts in different BS.

This is not advice. If you want advice employ a IFA. It is just what I would do if I had been foolish enough to place my savings with a bank that offers huge salary multiples on mortgage loans and makes a virtue of "Loan Payment Holidays."

thehound

darktrader wrote: »

Fortunately, I don't have any funds in NR. If I did, I would be withdrawing them this morning via a branch rather than the Internet.

This would not be because I think they will go bust but because I am a cautious saver and, despite the assurances of all manner of "experts" the one phrase that keeps popping up in various programmes about the wider "loan" problems and credit crunch is, "this has never happened before..."

In any Market where there is a never-before-seen event or series of events uncertainty and, possibly panic, can take hold.

I have my cash savings spread over three accounts in different BS.

This is not advice. If you want advice employ a IFA. It is just what I would do if I had been foolish enough to place my savings with a bank that offers huge salary multiples on mortgage loans and makes a virtue of "Loan Payment Holidays."

Surely a cautious saver would leave their money where it is if the interest rate is right. Then you don't lose interest in the short term and at the very worst you would get back 90% of your savings under the Financial Services guarantee, assuming you're not saving over 35k.

olly300

roddydogs wrote: »

Ive just tried to take money out of NR suprise, surprise, the Website is not working-Just coincidece im sure. Coul other members please try!:mad:

Most websites are tested for a specific number of customers being on it. If too many people log in then the website either completely crashes or goes slow. If this has happened before or there is a possibility of it happening (which there is for all websites) then the website is configured to not let new people log on. If the website is still getting too many hits then the admins will take the server down.

This is not advice. If you want advice employ a IFA. It is just what I would do if I had been foolish enough to place my savings with a bank that offers huge salary multiples on mortgage loans and makes a virtue of "Loan Payment Holidays."

Large loan multiples and payment holidays have been offered by loads of banks offering mortgages. I know this as when I was looking for a mortgage my advisor showed me lenders like the Halifax & AL where the cheapest for massive multiples. (I personally found it quite scary someone was going to loan me ridculous amounts of money so I would have to eat bake beans for years.)

NR are the fifth biggest mortgage lender in the UK. And not all of their mortgages are for the subprime market. While retail banks in the US have gone bust the UK system is such that if there is loads of trouble a larger UK or European bank would be found to buy NR.

If that happens that is when you should move your savings as the savings rates are likely to go down.

dunstonh

I must say that I started this forum after a month of contemplating and see Northern rock's share prices which was a week ago, before any smart boy 'financial journallist' even had a hint of this. Tomorrow you will see all these so called intelligencia say it all.

Why has the share price dropped? Because future profits are going to be hit. Less profit, less dividend.

Indeed, the share price now makes the company more vulnerable to takeover and there could be a point soon that sees the share price being seen as value and worth buying. Another 5%-10% down and I may buy some shares in them.

There is no issue of solvency here as they have far more assets than liabilities. The problem is that some individuals on this board cannot interpret what they are reading and are scaremongering and that does more damage than good.

patel_ria

What would be the best way to buy the NR shares?

lil_lisa

First I'd like to say that although I consider myself good with money I am by no means an economist and know very little about financial terminology and processes.

I have been following this thread closely as I have a mortgage with NR and would like to have some advice. I understand that as the Bank of England has agreed to be the lender of last resort NR will still continue to operate although they may be forced to increase lending interest rates. I have a 5 year fixed rate mortgage, of which I currently have another 3 and a half years where repayments should remain the same. Is it guarenteed under any eventuality that this fixed rate period will remain is it possible that if 'bought out' by another bank they will be able to increase my interest rates?

webdeepak

I stated this thread and now I seem to be changing my mind.
I think I would see more gain by removing my money from savings and buying Northern Rock shares after there additional 25% fall and its just afternoon.

PS. Please take advice before you buy any shares

TBeckett100

i wouldnt rush to buy shares, 2 things
1) NR havent drawn on the reserve fund yet
2) the extent of withdrawals has not been seen