Northern Rock going bust question

HelpWhereIcan

catwoman150 wrote: »

I have a mortgage with Northern Rock, so what happens when they get taken over. Which I think is very likely. I know that I have to keep paying it and my mortgage is fixed till 2009.

Correct

catwoman150 wrote: »

Would we get shares with the bank/ building society that takes over?

No

catwoman150 wrote: »

Would the interest rate double over night as well? When its time to remortgage?

Possible, depends on what happens to interest rates over the next 2 years. Whatever happens, you will be able to remortgage without paying an early repayment charge to get a better deal.

WTF?_2

HelpWhereIcan wrote: »

:rotfl: :rotfl:

I notice you are mortgage advisor, whose livelihood depends on selling mortgages to people. Which depends on people believing that it's worth borrowing ever more huge amounts of money because the market will magically keep on rising and they have to get in ASAP.

No wonder you spout such amazing err, 'hype' - you have to hope the fiscally ignorant keep taking out huge mortgages or your livelihood would be under threat.

As I posted elsewhere on this site, NR is a company whose business strategy of aggressively selling loans (125% LTV, self cert, extremely high salary multiples) and funding it by market borrowing and securitization has completely failed in the supposed 'free market'.

They only exist today because the government and Bank of England have made some unprecedented moves to keep their pulse going.


Yet you keep telling us that in fact they were very responsible lenders who are merely the victims of unreasonable public/media panic. Incredible! :rotfl:

I suppose you have to keep the rubes flowing into your business by telling them whatever you think they need to hear. After all you have to HelpMyselfWhereIcan.

dunstonh

They only exist today because the government and Bank of England have made some unprecedented moves to keep their pulse going.

As of date, NR have not had a penny from the Govt. The facility is there in case it is needed but they have yet to draw on it and may not do so.

Yet you keep telling us that in fact they were very responsible lenders who are merely the victims of unreasonable public/media panic. Incredible! :rotfl:

Their business model has been identified as being flawed and reliant on sustained low interest rates and availability of credit. However, the media has done more damage to Northern Rock than it should have been allowed to do. The lending book of NR is not of bad quality according to the FSA.

And for reference, I am an IFA and not a mortgage adviser so have no financial interest in mortgages.

HelpWhereIcan

!!!!!!? wrote: »

I notice you are mortgage advisor, whose livelihood depends on selling mortgages to people. Which depends on people believing that it's worth borrowing ever more huge amounts of money because the market will magically keep on rising and they have to get in ASAP.

Surely you can work out that a credit squeeze/HPC is actually good news for mortgage advisers. When people struggle to obtain credit they often turn to us for advice. Sad for your cheap point, but true.

!!!!!!? wrote: »

No wonder you spout such amazing err, 'hype' - you have to hope the fiscally ignorant keep taking out huge mortgages or your livelihood would be under threat.

I think there would be quite a few of my customers who would object to being called fiscally ignorant - especially seeing as I tend to have quite a few high net worth who worked out years ago that STRing, buying gold and wearing a tinfoil hat was not fiscally sophisticated.

!!!!!!? wrote: »

As I posted elsewhere on this site, NR is a company whose business strategy of aggressively selling loans (125% LTV, self cert, extremely high salary multiples) and funding it by market borrowing and securitization has completely failed in the supposed 'free market'.

I think it's a little early to claim that all securitisation has completely failed, but whatever makes you feel better. A risky model? Yes. One that has suffered a mortal wound? We will have to see. The fact is that NR survives, the mortgages it still owns are of sufficient quality to have a value that means that there will be a buyer for them.

!!!!!!? wrote: »

They only exist today because the government and Bank of England have made some unprecedented moves to keep their pulse going.

As dunstonh has said - they have not used any of the facility agreed by the BoE

!!!!!!? wrote: »

Yet you keep telling us that in fact they were very responsible lenders who are merely the victims of unreasonable public/media panic. Incredible! :rotfl:

Not merely the victims of the media, their dependance upon securitisation and bonds is also responsible. It would never have bankrupted them though. Their 'problems' were compounded beyond proportion by the media.

10% of savings on deposit being withdrawn was hardly going to bankrupt them. The only sense in which they have been a victim is the reporting. They are not (and never were) likely to collapse, but the share price has been forced down by inaccurate reporting of the cause and extent of NR's problems and wilfull overlooking of the facts behind NR's request for a BoE facility (which they have still to use).

!!!!!!? wrote: »

I suppose you have to keep the rubes flowing into your business by telling them whatever you think they need to hear. After all you have to HelpMyselfWhereIcan.

Glad to hear you are so concerned for my business. It's really sweet of you to be so worried that I will have problems if Northern Rock disappear tommorow. Who else am I going to place mortgages with? what a worry! Oh, silly me - I'll just have to try one of the other hundred or so lenders in the market rather than a lender I have used 3 times all year!!!!

Now rather than sticking your tongue out and telling me how big your daddy's todger is and how much I smell, why don't you do some research and blow me away with some facts that support your argument.

Why not visit HPC and borrow an non specific graph with diverging red and green lines to 'prove' how Northern Rock's criteria has exceeded that which could be supported by the free market!!!!

:rotfl: :rotfl:

WTF?_2

HelpWhereIcan wrote: »

Now rather than sticking your tongue out and telling me how big your daddy's todger is and how much I smell, why don't you do some research and blow me away with some facts that support your argument.

Why not visit HPC and borrow an non specific graph with diverging red and green lines to 'prove' how Northern Rock's criteria has exceeded that which could be supported by the free market!!!!

:rotfl: :rotfl:

Since you're going to resort to childish ad-hominem baiting I don't see much point in continuing to 'debate' points with you. I only hope you are more professional in your business dealings.

horace_2

Oh deary deary me.


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/cneu119.xml

h

His_Lordship

horace wrote: »

If I had money in NR I would be rushing to withdraw all my cash. Read this link and be afraid.


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/cneu119.xml

h

HM Government should tell the corrupt EU to get stuffed, just as the frogs always do.

dunstonh

Disgraceful reporting by the Telegraph again. There has been no bail out and no money has gone from Govt to Northern Rock.

HelpWhereIcan

!!!!!!? wrote: »

Since you're going to resort to childish ad-hominem baiting I don't see much point in continuing to 'debate' points with you. I only hope you are more professional in your business dealings.

Funny how your description of an ad-hominem attack could be used to exactly describe your accusation that my posts were based in commercial self interest. If that is not attacking the person rather than the arguments, I am not sure what is.

Never mind. And here was me looking forward to having to respond to some well thought out points regarding Northern Rock's solvency based in logic and fact with independent reference to back it up.

I feel awful that you will not be able to save all those poor innocents from themselves (or the likes of me) just because I showed you the same lack of respect you showed me.

horace wrote: »

Oh deary deary me.


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/cneu119.xml

h

To be fair, the article does admit

EU officials stressed that the competition watchdog had not launched a full-scale probe, and so far appeared satisfied that London had acted within reasonable bounds.

Shame that the facility has yet to be used, is limited by collateral and is at arate that is widely regarded to be penal let alone commercial.

We might get to see an interesting situation if the eu decides to get involved, but again the Telegraph overstates the liklihood of this happening and the circumstances in which this could happen.

ELIZA_D

oh godddddddddd.........i have signed on the dotted line,the valuers are coming out on friday and every time i read and re read (and re read) this thread i get more and more confused......should i ,shouldnt i........to northern rock or not.................oh goddddddddddd