Northern Rock

oedipus1

I have shares with NR and have witnessed them tumbles over the past few months which is ashame. Can I ask, what will happen to my Shares if NR is bougt out by another bank..will I just have to lose them? Thanks for any advice.

oedipus

In_Search_Of_Me

"Did it ever occur to you that a great deal of the trouble they're in is because of people who owe them money welching on the deal? You know, people like you?

Just pointing out that people in glass houses and all that..."

"thanks" for that Conor...

Like many I have a loan with NR and I think we are all learning the lesson that you cant have it all! I dont think any financial institution really gives a stuff aout borrowers - its all about money but then we were happy to borrow when they would give us above average loans without thinking too much about the fact that this possibly was NOT a good idea!
Bully for you not sitting where we are! Most of us know we have been foolish & rarely a day goes by where we dont suffer for our stupidity! If it makes you feel better to kick us when we're down then carry on - I really feel sorry for you! Yes, we may be in debt but most of us have the decency to show compassion for others which is clearly more than can be said for you!!

fletch3163

I think about this often, you know, the debt situation in Britain. What possessed us? When I was growing up debt was never mentioned, let alone owned up to. God forbid you told anyone you had HP. I remember my big sister convincing the bank to give her a mortgage. She had to do more than just be able to pay it, she had to impress the manager. Even me, at age 30 some 10 years ago, having never had any real debt and earning a decent(ish) wage being rejected for a credit card. Whatever happened to these prudent institutions that I cursed back then?

Nowadays a lot of these companies set their advertising caps at those of us with our backs against the wall, little hope of a way out, and they sell us light at the end of the tunnel. They are badly governed and were badly behaved and they will pay for it in the coming weeks and months. Unfortunately for those of us who succumbed to Carol Vorderman et al there is only more heartache.

Personally, any debt I am in is down to my own desire to have. I shall get through it. I don't for a second blame anyone for the state of the collective finances but it certainly had to come. We have to balance the books, all of us. We've lived the false economy for too long. There's absolutely nothing to be smug about, nor is there anything to blame anyone else about, nor is there any point in getting angry at those of us with more or less debt. What's the point?

Sorry to go on. I've never been one to get to the point swiftly:o

buglawton

oedipus1 wrote: »

I have shares with NR and have witnessed them tumbles over the past few months which is ashame. Can I ask, what will happen to my Shares if NR is bougt out by another bank..will I just have to lose them? Thanks for any advice.

oedipus

If a takeover bid arrives, the share price will bounce up but probably not to it's previous high. Once the takeover is completed you would be offered the cash value of the shares at the takeover price point, compulsorily. I know as shares of mine have met this sort of fate in the past.

In_Search_Of_Me

I agree. I think collectively we have learned a lesson but the hard way but now we'll be wiser hopefully and will just chip away at it and when we have some dosh will learn to save and wait a bit instead of having it now on CC! Its a generational thing - my mum is horrified at how we just go out & get stuff and I can see why now!

pania

Good comment fletch. I personally am an ambassador for financial training even right back at primary school level right the way through the education system. Yes children need to know about sex as i tis a fundamental part of adult life. Money should be given the same priority.
There was a poor guy on here a few weeks ago who had absolutely no idea about how to budget, or how much it REALLY cost to run a house. people should be educated so that they don't have the option to get their money in a muddle. I am in debt due to NUMEROUS circumstances, a very very small portion of which is through being silly with my money and not realising the situation i was in. I was earning a good wage in a fantastic career and allowed myself to be taken advantage of by mr A.N Other. however i then did not realise the severity of the situation and continued to consolidate my debt.
No one told me this was a bad idea
no one taught me about budgetting and money management.
so i guess the question is should finances be taught in schools to prevent the debt crisis worsening, I for one don't ever want to see anyone in the situation i was in and many others are in.

taxi73

I have to agree with many of the points above.My opinion for what it's worth I believe there has been a recession hanging over us for about 3 years.Homeowners were lulled into a false sense of security by the sharp increase in equity within their properties and had luxury holidays,better cars and things they wouldn't have been able to afford along with very low interest rates for any debt taken out...what a lot of borrowers didn't expect was the rise in interest rates or that so many people would go bankrupt,dmps or Ivas and that with claiming bank charges back the overall cost of borrowing goes up for everybody!!!....I am no way slagging people off that are in that situation as by my sig you can see I have a lot of debt(this was mostly accrued reviving my business so that I didn't go bankrupt)...that with the banks lending stupid amounts of money out and mortgage people not looking at the right multiples for lending is the perfect recipe for financial meltdown...affordability is the factor that all lending institutions will have to take into account now and I think we are starting to see that and not too soon really...that's only my opinion anyway

pania

yes is interesting the way that the banks are now routinely refusing credit to people that still have a reasonable credit rating, it does seem to be about an unofficial limit on the amount people are now allowed to have and the "affordability" of it. However that is worked on so many different criterias that surely should be standardised within the industry. for example a ratehr welcome company will not take into account ANY additional income above basic even if storngly commission based when working out this affordability therefore maybe limiting people unfairly, whereas another rather more rocky lender will take everything going! very bizarre.

fletch3163

I worry too about those poor people who bought properties in the past two years. I fear they will end up in that awful bracket of negative equity. I firmly believe there has NEVER been a worse time to be in debt. We're all about to cop it!

I agree that domestic finance should be taught in school. 100%!! These consolidation adverts are on all day long. Kids see it as the norm. There absolutely has been signs of this all happening for the past 3 years or so, definitely! We've been living a fake financial world for too long. I read somewhere recently about the statistic for our spending is something like for every £1 earned per man, woman and child in Great Britain we actually spend £1.05. Imagine that!

The financial institutions will be changing their ways of dealing with us from now on. We'll be less likely to move our credit around. I fear though that it'll send people off to the consolidation companies a wee bit faster. They need to be grabbed by the throat NOW and be made to tell it like it is. No more "180 easy payments", "take a bit extra and go a holiday", "buy a car while you're at it"...... they make me sick!:mad:

pania

yep the consolidation adverts paint everything as rosey, "you're credit rating may be affected" Should well read "there is a 100% certainty your credit will be affected and you may find yourselves stuck woth us and your existing mortgage lender for a VERY long time!!"
the little bird turning into a dove and flying joyously off into the air
the man pictured in grey mowing his lawn that suddenly goes all colourful and you next see him accidentatlly taking his wifes head off with his new sit on mower (well thats what i always imagine will happen!)
It paints a very rosey picture when unfortunately life ain't like that! when what is really needed is education, both to children and adults alike. free evening courses on finance management etc.
I do with clients that wish to consolidate debt to their mortgage, yes on many occasions they have ample equity to be able to do it but i ALWAYS have the conversation with them of "are you sure you want to do this" do you realise the implications? do you understand that you will be paying interest on this debt for much longer than you would originally be?" and that they need to ensure they don't run up the debt again else pretty soon there will be no equity left to rely on. On some occaisons i've pointed them in the direction of this site!
I think northern rock have had a harsh lesson dealt to them, they have a very good very valid place in the market but i feel it's opened a lot of peoples eyes up to the financial reality of the siutation we as a country are currently in.