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northern rock on the news begging for cash
Comments
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Sooooo - in your savvy :rolleyes: financial opinion what would have happened if the BoE hadn't loaned NR the money it needed to stay solvent?
:rotfl:
The loan is not to keep them solvent its to enable them to continue issuing mortgages.
If they hadn't lent them the money Northern Rock would have stopped issuing new mortgages.
Their existing mortgage book would continue they would either run it down (ie until all were paid off) or sell them to another institution.
Northern Rocks mortgage book is worth more than their current market capitalisation at present.
http://www.david-wilmshurst.co.uk/nrk_merrill160807.pdf
Nigel0 -
BobProperty wrote: »Questions are: Will people be queuing to get their money out at 09:00 tomorrow? (happened to Countrywide in America)
and
Is it worth a put or bet in that direction?
£1 to the 1st person to go into a busy northernrock branch and and shout "what do you mean the bank is out of money"
bet you could film it and flog the results lol0 -
!!!!!!?
I'm not going to repeat myself.
But as usual you don't understand the issues you are raising.
Self cert isn't sub-prime. Self-cert is self-cert.
NR don't do 100% and greater LTV mortgages. They do 95% mortgages with up to 30% unsecured loans attached. The mortgages are 95% LTV and they are securitisable (and have been securitised by them for years with no problems).
I'm not moving my savings to NR - but I wouldn't be moving my savings away from NR either if I had any with them. There's no reason to do so.0 -
You'd be waiting for a while then if Countrywide is anything to go by.Guy_Montag wrote: »If I had any money in NRK, I'd queue up* to take it out - not because I think they'll go bust, just for sh1ts & giggles.
*I'd make sure I was there at 8:50 or earlier so I'm properly queueing.
http://www.latimes.com/business/la-fi-countrywide17aug17,0,1835165.story?coll=la-home-center
So, puts or will it rebound tomorrow?
http://uk.finance.yahoo.com/q/bc?s=NRK.L&t=1d&l=off&z=m&q=l&c=A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
MarkyMarkD wrote: »NR don't do 100% and greater LTV mortgages. They do 95% mortgages with up to 30% unsecured loans attached. The mortgages are 95% LTV and they are securitisable (and have been securitised by them for years with no problems).
Link
Perhaps NRK don't do 100% mortgage but the link above is pretty clear that they do (did?) 125% mortgages.
A little research before posting helps credibiltity I find.MarkyMarkD wrote: »I'm not moving my savings to NR - but I wouldn't be moving my savings away from NR either if I had any with them. There's no reason to do so.
Your choice. I'm starting work late tomorrow. I think I'll pop down to Houdsditch to see what a Bank Run looks like in the flesh.0 -
Surely the problem within the whole market at present is no one believes anything is securitisable at the rates they were getting a few months back, otherwise there wouldn't be a problem. I can see this market unravelling like Lloyds Insurance did because the whole market was inter insured and self supporting. The moment someone has a doubt or can't get finance you have an "undoing" of the whole network.MarkyMarkD wrote: »....NR don't do 100% and greater LTV mortgages. They do 95% mortgages with up to 30% unsecured loans attached. The mortgages are 95% LTV and they are securitisable (and have been securitised by them for years with no problems)....
And I thought NR did 100% LTV with 25% unsecured, but if they structure it like you say I'll believe you. Only why would they do it when they can sell the secured loan part?A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
MarkyMarkD wrote: »!!!!!!?
I'm not going to repeat myself.
But as usual you don't understand the issues you are raising.
Self cert isn't sub-prime. Self-cert is self-cert.
NR don't do 100% and greater LTV mortgages. They do 95% mortgages with up to 30% unsecured loans attached. The mortgages are 95% LTV and they are securitisable (and have been securitised by them for years with no problems).
I'm not moving my savings to NR - but I wouldn't be moving my savings away from NR either if I had any with them. There's no reason to do so.
It's a 125% LTV mortgage in everything but name.
Get together 5% of the value of your property (hmmm, can you raise about 10-15k with your credit cards perchance?) and NR will happily lend you 130% of its value to buy it.
[edit: 120% LTV.]
And as for self-cert mortgages, they were a major component of the sub-prime problem in the states.
http://www.fsa.gov.uk/pages/Doing/small_firms/mortgage/practice/scm_details.shtml
The area of self-certification mortgages and in particular the potential for abuse of self-certification mortgage products during the mortgage sales process was identified as an early priority by the FSA. The potential for abuse of the self-certification of income has been well publicised in recent years, with two programmes broadcast by the BBC in October 2003 and February 2004 alleging certain abuses.
..
In addition we have drawn on the findings from our other thematic activities carried out over the past 12 months such as the recent sub-prime project where the use of self-certification mortgages have been evidenced.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Would agree that it's definitely not bankrupt, but not sure about whether it can continue to turn a profit on its business model (eg needing regular wodges of dosh from the "spot market"). Could be worth supporting until somebody with a bit of a cashflow surplus wants to put a bid in..? (Norvern Wok?).Debt_Free_Chick wrote: »As I understand it ... the BoE believes that NR's "problem" is temporary and only to do with the current market sentiment. That, fundamentally, it is a sound business and worthy of support. That, if it were a crock of $h!T, then it wouldn't have "helped".0 -
My new BTL mortgage application with NR !!
Fri. survey carried out
Mon. credit check carried out
Tue. asked for my accounts
Wed. asked for mining report
Thu. asked what school I atttended
Thought they were stalling
0 -
Two things on the radio this morning:
NR has deposits of £24b and lends £100b. The mutual BSocs must be laughing their heads off and going "told you so".
A listener said their website had crashed, presumably sometime in the last 12 hours.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0
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