Northern Rock going bust question

pstones578

If they go bust would some/all of my mortgage be written off?

craigw007

no, the adminstrator/new buyer will inherit the mortage book and you will still have to continue paying.

I to would love to see it "written off" but unfortuntely not. I have a NR mortgage as well but right now i am not concerned buy all these scare mongering tactics that i see and read.

All the banks have at times gone to the bank of england with cap in hand. Others have also raised interest rates, the unfortunate situation is that NR is more exposed that some of the other lenders.

dunstonh

If they go bust would some/all of my mortgage be written off?

ROFL - there is you hoping.

Firstly they are not going bust. They are nowhere near that level.

Secondly, the mortgage book would be bought by another lender who could actually offer worse terms (or better) than those offered by Northern Rock.

Poppycat

http://news.bbc.co.uk/1/hi/business/6994328.stm

lil_lisa

I have been following this thread closely as I have a mortgage with NR and would like to have some advice. I understand that as the Bank of England has agreed to be the lender of last resort NR will still continue to operate although they may be forced to increase lending interest rates. I have a 5 year fixed rate mortgage, of which I currently have another 3 and a half years where repayments should remain the same. Is it guarenteed under any eventuality that this fixed rate period will remain is it possible that if 'bought out' by another bank they will be able to increase my interest rates?

badgerboots

I have a loan with them that I had been trying to repay off early, should I hang fire in case they get taken over and some shares come by my way ?

noh

badgerboots wrote: »

I have a loan with them that I had been trying to repay off early, should I hang fire in case they get taken over and some shares come by my way ?

Why do you think you would get any shares?
Just pay back your loan if thats what you planned.

Nigel

Jonesya

badgerboots wrote: »

I have a loan with them that I had been trying to repay off early, should I hang fire in case they get taken over and some shares come by my way ?

Why would you get free shares? As I understand it they're not a building society, they're already a PLC - any proceeds from a takeover would most likely go to the shareholders.

knowledgeman

Northern rock will not go bust

Id actually suggest that buying shares today would be a good long term money maker

There assets are high and its a cash flow problem which the BOE will assist them through

It may take a few months, maybe even years but they will recover and the shares will recover making anyone who invests now a fortune

The same could be said for all banks as the shares are low at the moment and will recover

As said even if they did go bust which they wont another one of the banks would buy the business from the creditors and streamline all the products with their own which could be bad for you

Wig

Wow, that's a good time to buy....todays price not shown on the graph 448p

Dithering_Dad

Poppycat wrote: »

http://news.bbc.co.uk/1/hi/business/6994328.stm

That's a deliberately deceptive photo - those people were queuing from Mrs Miggin's pie shop at the top of the photo, down past the Northern Rock branch, when a BBC camera man shouted "Oi! You lo!t" to make then turn around when he took the pic. This is how the press manipulated the common man.

Incidently, Mrs Miggins does make exceedingly good pies.