Northern Rock

climbgirl

shopaholictiedtheknot wrote: »

OMG we only just got our mortgage with them last month, what on earth will this mean for us? Are there any experts on hand to advise at the moment? I am in a panic now :eek:

Stop panicking! They are not in danger of going under, they've had to borrow from the BoE because they're more reliant on the money markets than other banks. I think it was rayday who summed it up nicely - they have a higher lending:deposit ratio than other banks so they have to borrow money from the money markets to make up the short fall. And because of the recent sub-prime crisis, that's harder to do. So the BoE made up the shortfall.

The BoE isn't going to throw their money into a business that's about to go down the tubes.

Barclays did exactly the same thing as Northern Rock less than a month ago, nobody panicked then. If everybody goes in and withdraws their money in a needless panic, then it's going to make matters a lot worse.

Dr_Hook

climbgirl wrote: »

Barclays did exactly the same thing as Northern Rock less than a month ago, nobody panicked then. If everybody goes in and withdraws their money in a needless panic, then it's going to make matters a lot worse.

Unfortunately, it seems that's exactly what's happening - link :rolleyes2

climbgirl

Dr_Hook wrote: »

Unfortunately, it seems that's exactly what's happening - link :rolleyes2

I know, it's crazy. I guess they can't see that their own actions are exactly what's making it worse....

The govt protects individual's savings of up to £32,000 in the case of a bank going under anyway. I forget the agency/fund that does this, I'm sure someone else here will know.

rayday2

Its sheep like behaviour, they have seen the news but don't reallly listen to what is being said.

Still poster who was worried do not worry your mortgage is safe if NR position gets anymore tenious they will just be bought out or something. Remember you own the house they only have the charge on it.

Dr_Hook

It's a sign of the times - sadly public perception is more important than reality.

Makes me wonder why no-one so much as blinked when Barclays borrowed £1.6bn 2 weeks ago though

rayday2

Most have been something more news worthy that day!

climbgirl

Dr_Hook wrote: »

It's a sign of the times - sadly public perception is more important than reality.

Makes me wonder why no-one so much as blinked when Barclays borrowed £1.6bn 2 weeks ago though

I know, that's what I don't get. Nobody batted an eyelid when Barclays did exactly what Northern Rock have done. There certainly wasn't a mass panic and withdrawals.

Maybe Barclays have a better PR team than Northern Rock...

rayday2

OK very cynical here but I have noticed the chancellor has been interviewed about this and I think NR have been used by the government to show how good they are being with economy.

Although it did seem stupid when I heard him say it was a sign of a good economy - right - ok run that one by me again!

Dumb_Blonde_3

Okay so I've got a small(ish) loan with NR if say the worst came to the very worst and they went under - would receivers (if brought in) ask me to repay it in full straight away ?!?!!?!? Any idea's anyone ????

Dr_Hook

Dumb_Blonde wrote: »

Okay so I've got a small(ish) loan with NR if say the worst came to the very worst and they went under - would receivers (if brought in) ask me to repay it in full straight away ?!?!!?!? Any idea's anyone ????

The latest from the BBC should put your mind at ease.