Nothern Rock

Dithering_Dad

It is a pessimistic-ish view, but the last time the US led the world into recession, our lovely goverment and the BoE lowered interest rates to create a consumer/housing boom that stopped the UK from following.

This time, everyone is upto their necks in debt, so that policy won't work. Plus the banks are so exposed that they wouldn't go mad with lending this time.

If the world goes into recession this time, nothing will stop the UK from tagging along. Couple job losses with high interest rates and huge mortgages and general debt and you're heading for trouble.

I saw the seeds of this when the US housing problems began (when America sneezes, the UK catches a cold) and so I "battened down the hatches" and embarked on my Mortage repayment program. I'm also building up my offset account to cover me for several months if work goes slack.

I'd advise anyone who works in the private sector to do the same. If I'm wrong then the worst that can happen is you have a lot of money saved up and lower monthly mortgage repayment bills. If I'm right, then at least you've done all you can to prepare yourself.

MortgageMamma

well its good that you think forward and plan for the worst without getting obsessive. I dont have a mortgage, I rent my property and the landlord is mortgage free so I don't have to worry so much. But I will be moving in Feb to the South Coast and it does make me ponder how landlords will react to this

dunstonh

I wouldn't recommend them to anyone.

Well that is just daft.

The amount of misinformation about NR at present is just stupid. If people actually choose to learn the facts (i.e. read the articles properly) they will see that there is no problem with NR about from its ability to fund new deals or new deals at decent rates.

I for one hope there is not a house price crash because I will be out of business.

You wont be. The people forced to rent currently will be able to afford to buy and they will take advantage of all the amateur landlords that are losing their properties or being forced to sell up at a loss. That creates a spiralling effect as the demand for renting goes down the landlords lose out more and once properties drop to a certain level, the more experienced landlords will start buying again as the rental yields will be worth the risk again and those that couldn't afford to buy/move can now do so. The cycle then begins again.

FiveNews

Five News would like to talk to a Northern Rock customer. You can either have savings with them or have a mortgage with Northern Rock. We’re very keen to hear your reaction to the financial concerns regarding Northern Rock and also your concerns over how this will affect you. We’re looking for someone who is based around London and is available to do an interview today. If you’d like any further details please contact Emma Slifkin on 020 7800 2735 or [EMAIL="emma.slifkin@bskyb.com"]emma.slifkin@bskyb.com[/EMAIL]

Many thanks,

Emma

MortgageMamma

FiveNews wrote: »

Five News would like to talk to a Northern Rock customer. You can either have savings with them or have a mortgage with Northern Rock. We’re very keen to hear your reaction to the financial concerns regarding Northern Rock and also your concerns over how this will affect you. We’re looking for someone who is based around London and is available to do an interview today. If you’d like any further details please contact Emma Slifkin on 020 7800 2735 or [EMAIL="emma.slifkin@bskyb.com"]emma.slifkin@bskyb.com[/EMAIL]

Many thanks,

Emma

What sort of information are you looking for for your article?

dunstonh

MortgageMamma wrote: »

What sort of information are you looking for for your article?

Well it wont be the facts thats for sure.

jetfighter

The timing of this astounds me for personal reasons.

Yesterday was the completion date on our re-mortgage with Northern Rock (2-year fixed rate). We were customers of NationWide up until yesterday.

:eek: :eek: :eek:

I don't know enough about these matters to know how this will affect us, but we re-mortgaged through London & Country and went on their recommendation of Northern Rock as being the best deal for us.

We went with them on the basis that they can lend us an extra £15k to complete our loft conversion. We should be getting this £15k shortly and the plan was to re-pay it as a lump sum, then withdraw it (with their prior agreement) when we need it.

I'm very worried now that if we re-pay the £15k, we will not be able to withdraw it... and will have effectively re-mortgaged for no reason. We will also not be able to complete our house.

I am feeling very nervous at the moment. Does anyone have any experience in matters such as this?

Lantana

MortgageMamma : What sort of information are you looking for for your article?


Think this is a telly job ...your chance for 2 mins of fame !;)

jessleski

The Northern Rock news has sparked panic but the chances are it will be bailed out until some other bank comes in and takes it over

MortgageMamma

Lantana wrote: »

MortgageMamma : What sort of information are you looking for for your article?


Think this is a telly job ...your chance for 2 mins of fame !;)

God no I would NEVER do something like that, I was just being cynical!