Northern Rock going bust question

WTF?_2

knowledgeman wrote: »

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

(Ahem) http://www.bbc.co.uk/blogs/thereporters/robertpeston/2007/09/rock_cant_be_sold_1.html

rainbowtrout

Dithering_Dad wrote: »

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.

DD you joker. That's the Cambridge branch of Northern Rock and Mrs Miggin's pie shop, as far as i know, is in Blackadder.

MABLE

pstones578 wrote: »

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

Of course it would. Any one with a mortgage with them and if the NR went bust they would just give you your property.

Now what I have just said is as silly as your question.

EdInvestor

HelpWhereIcan wrote: »

Northern Rock to be bought by a major banking group looking to expand their distribution/product range....May see Northern Rock become more competitive again as a nice steady stream of funding from a cash rich parent opens up.

Certainly they must have some useful expertise in there regarding funding and securitisation - after all the credit markets aren't going to be frozen forever once someone figures out how to arrange a credible securitisation rating system. :rolleyes:

Just my tuppence worth while I sit and decide whether shares in NR are cheap and a good buy.

Of course any buyer is going to want the NR price to be as low as possible.:(

There might be some money to be made by buying some of the other shares that have suffered from contagion though - such as B&B, A&L and perhaps HBoS.It's now clear there's quite a substantial gap between NR and everyone else.

For instance according to the Sunday Times, NR has securitised mortgages worth 46bn pounds which is 1,725% (!) of its market value, and 54% of total loans.

The next one down is B&B, whose securitised mortgages total only 12bn, 566% of its (similar) market value - and 35% of total loans, so a much more circumspect mix.

Other banks whose share prices have suffered have even less exposure.

aah

I live in the North East, where NR is an institution. Every other day I pass the white elephant that is NR's new head office - under construction, god knows what will happen to that.

Yet I am not going to slag them off - I have no money to withdraw, so why should I? But I do have a mortgage with them, and a fairly long unsecured loan, so I do have some worries. Firstly, if I keep paying my mortgage / loan, can I be sure that my money is going into my property / debt??

And, as others have enquired, what will happen to these mortgage / loan products if they are sold on.

My current account is with HSBC. I hate them. I really hope my mortgage doesn't end up there.

But most of all, I am thinking about the poor - and lowly paid - staff of NR, and of our region, there are few enough HQs of companies oop North (MUCH further north than Leeds) and I do so hope that this one doesnt bite the dust and head southwards.

A.

ELIZA_D

Mmmmmn?? just applied for my mortgage on friday too,not sure whether to go for a 10 year or 5 year fixed rate!!

homer_j_3

you still going on about that one eliza d? lol

Debs12

We have a mortgage with Northern Rock and and about too move home on 19th October. On a fixed rate 3 year deal (with a high redemption well high enough). On our deal we stay on the same mortgage and deal and borrow more on the same rate (5.09%).

We are slightly concenred that if it all goes wrong they wont have the addtional funds for us on the 19th Ocotober??? Will they? Can we insure agaisnt it?

Or should we give it at least a week or so to see if things settle down and then apply to other bank to have them ready to save the day in the wings?

We love our new home it is the Scottish System with missives signed so we cannot pull out and will have to pay costs if we do not complete on the 19th!
Forget savers I think we are the ones that have to be slighly concerend.

ELIZA_D

My Gosh HOmer..yes i am!!!!

finally decided it would be the best one for me then this happens.....was going to phone my F/A when i heard the news and say "the deals off" but then i came on here and feel somewhat calmer.......am still going to call him though. What do you reckon 10 years or 5 !!!!!!!

homer_j_3

how about 7 yrs lol or 3? I don't know lol. You are tied in for whatever the fixed rate is so do what you feel comfortable with.

I also found this new guide on the front page about northern rock...

http://www.moneysavingexpert.com/banking/Northern-Rock-Crisis