Northern Rock going bust question

Wig

DD, you are joking I hope, there's no way I believe that for a second.

dunstonh

NR really do look ripe for a takeover. A good quality lending book with liabilities around 20% of assets and but valued 45% lower than earlier in the year.

MortgageMamma

Shall We Club Together And Buy It Dh? ;-)

HelpWhereIcan

Northern Rock to be bought by a major banking group looking to expand their distribution/product range.

If I was to speculate, I would have a guess at HSBC. They are just about the only lender in the UK whose mortgages are covered by the savings they have on deposit. They have a (currently) limited range, no intermediary arm and could well see Northern Rock as a way to re-enter the 100%, broker and poss even Sub Prime markets.

May see Northern Rock become more competitive again as a nice steady stream of funding from a cash rich parent opens up.

HSBC then has a subsidiary doing all the lending that the parent company won't do - sub prime, broker, high ltv etc etc.

Just my tuppence worth while I sit and decide whether shares in NR are cheap and a good buy. Them going bust is 'possible' but highly unlikely. How they will look in the future may be another thing.

Rick62

Dunstonh, where do you get liabilities being 20% of assets? Last full account I can find show £97.8B vs £101.0B assets, thats 97%?

nickpike

lil_lisa wrote: »

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?

Good question. I am in the same position but with 4 years left on 5 year fixed. Can anyone shed any light on this?

inmypocketnottheirs

It would be good for Citibank to take over NR. They took Egg over earlier in the year. NR business would give CB a high street presence. Interesting times in which we live in.

It's such a shame to see a bank struggling, going cap in hand to the BOE and having investors withdrawing their funds. Wonder how the Chief Exec feels now the boot is on the other foot!

tlck9

I applied for my mortgage on friday via northern rock and paid my fees I'm quite worried these will be lost...any thoughts

or the rate pulled

dunstonh

The NR position is unchanged. Current deals will already have been negotiated on the money markets prior to the credit crunch. Its the next batch of deals that are likely to be less favourable, should NR be required to draw upon the BoE facility. Something it has not done yet.

DrFluffy

PMSL!!! As if!

They will reassign it. You will not notice any difference!