northern rock on the news begging for cash

PAUL7331

Can somebody please answer this for me- Ok me and my partner have a fixed rate for 5 years morgage. Our house is currently up for sale though (weve been in it 2years) and were looking to move but borrow a bit more. Will all what is happening right now have any effect on us doing so???

WTF?_2

PAUL7331 wrote: »

Can somebody please answer this for me- Ok me and my partner have a fixed rate for 5 years morgage. Our house is currently up for sale though (weve been in it 2years) and were looking to move but borrow a bit more. Will all what is happening right now have any effect on us doing so???

The price of borrowing money is likely to rise. Also, criteria for loans will tighten - leading to less money being offered or no loan at all in some circumstances.

The most likely effect for you is the former - it'll cost you more to take out a bigger mortgage to get that better place.

Generali

PAUL7331 wrote: »

Can somebody please answer this for me- Ok me and my partner have a fixed rate for 5 years morgage. Our house is currently up for sale though (weve been in it 2years) and were looking to move but borrow a bit more. Will all what is happening right now have any effect on us doing so???

If you've got a sqeaky clean credit rating, you're not trying to borrow more than 3-3.5x you're income and you've got some equity in your house you might even find it costs you less to borrow!

I think banks etc are going to be fighting over the good risks and shunning the bad ones.

PAUL7331

well weve been told (last week) by northern rock that we can borrow £140k, so hopefully we'll still be able to borrow that. we'll also put some cash down from the house that we sell! Fingers crossed it goes smoothly. IF it dosent, cant we just use say Halifax instead and just get rid of Northern rock??

smudge450

My first post so be gentle with me.
I've some cash tied up with NR,and i'm not sure yet if i should scuttle down to the local branch and start the process of moving it.

Reading thru' the post's on here i find it slightly strange that some should seem to relish the idea that NR could go under,they obviously have no money tied up with NR, i just hope that are never in the same boat that i and many others are in.
regards to all

Generali

I'd certainly want to have less than £33k in NRK on deposit.

nelly_2

Pull you dough out and stick it in big knickers on ebay I say

tomstickland

Reading thru' the post's on here i find it slightly strange that some should seem to relish the idea that NR could go under,they

Well, there is a morbid fascination. It's financial rubbernecking.
It's also the first signs of anything happening after daily house price threads on MSE, for at least the last two years.

There's 1000s of posts on here from people who claimed that it'd be different this time regarding price corrections. In my opinion, tighter lending and higher rates etc will start to affect house prices.
It might be quite messy for me - I bought a flat 18 months ago, at 90% LTV.

This might be interesting: http://forums.moneysavingexpert.com/showthread.html?t=536614

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The C4 evneing news devoted most of the programme to the NR crisis. It was white hot. Footage of old George admitting the debt mountain was down to artificially low interest rates and how it was unsustainable...