Northern Rock Crisis Article Discussion

StevieJ

Does the guarantee include new deposits, I am looking for a safe haven for my cash?

Anna-Maria76

StevieJ you're a man after my own heart. Bring on the safe haven's!

MSE_Martin

I've just added the following update to the article

Update Note 6.36pm 17 Sept. Chancellor announces 'savings guaranteed'

The Chancellor has just announced that "I want to put the matter beyond doubt. In the current market circumstances, and because of the importance I place on maintaining a stable banking system and public confidence in it, I can announce today that following discussions with the Governor and the Chairman of the FSA, should it be necessary, we, with the Bank of England, would put in place arrangements that would guarantee all the existing deposits in Northern Rock during the current instability in the financial markets.

"This means that people can continue to take their money out of Northern Rock. But if they choose to leave their money in Northern Rock, it will be guaranteed safe and secure."

Sadly there are no more specifics than this, yet it should lay to rest many fears. This commitment means that not just the £35,000 is safe, but all money in Northern Rock is safe. It is likely the number crunchers have worked out the liability a bank like Northern Rock could leave and have provisioned to cover it. Good news... if only it'd be said last Friday.

Aegis

It's a fixed rate, I very much doubt that anyone can alter that contract now that its in place. However, that's only a guess, my knowledge on contract law is a little sparse

regularsaver1

I've had people in bank today unsure about their money in HBOS, and the others have said about Barclays, Nationwide. I think they need to calm down a bit, and listen a little to the chancellor and martin

scraps

Hello everyone, this is my first ever MoneySavingExpert post! This is a fantastic board with so many knowledgable people posting, its a great source of advice!

The query:

I took out a Northern Rock loan for £15,000 4 years ago. Unfortunately i've been in repayment difficulties since then and am an only paying approx £80 a month at the moment. So far I have repayed £4000.

This afternoon I thought there might be an opportunity to consolidate the loan cheaply if the bank was in trouble. Cheeky I know! They offered me a settlement figure of roughly £14,700, I offered them £7,000 and they didn't even try and start a negotiation!

Its almost certain Northern Rock WILL be taken over or go under. If they get bought out in current circumstances surely my debt wouldn't be valued at 100p in the pound and would be bought at a MUCH cheaper rate in the grand scheme of things? Even though I got flatly refused today, Is it worth me ringing up Northern Rock every day for the foreseeable future to ty and get a VERY good settlement or am I being wildly naive and deluded? If I did try and phone once a day could this have adverse affect any any way? Can anyone give me advice?!

Thanks for reading!

horsepills

scraps wrote: »

am I being wildly naive and deluded?

Yes to both.

Offering £7,000 on a £15k debt - :rotfl:

YorkshireBoy

scraps wrote: »

...surely my debt wouldn't be valued at 100p in the pound and would be bought at a MUCH cheaper rate in the grand scheme of things?

Dream on!...and welcome to MSE.

[Deleted User]

MSE_Martin wrote: »

I've just added the following update to the article

Update Note 6.36pm 17 Sept. Chancellor announces 'savings guaranteed'

The Chancellor has just announced that "I want to put the matter beyond doubt. In the current market circumstances, and because of the importance I place on maintaining a stable banking system and public confidence in it, I can announce today that following discussions with the Governor and the Chairman of the FSA, should it be necessary, we, with the Bank of England, would put in place arrangements that would guarantee all the existing deposits in Northern Rock during the current instability in the financial markets.

Hi,

the existing deposits, so does that mean that any new deposits will not be guaranteed, I've just managed to get money out of internet saver today, and it's still in limbo, so I could just bung it back in, though it cost me £35 to transfer by chaps.

badger999_2

why have northern rock allowed anybody to withdraw unlimited amounts from their accounts.
do they not have daily withdrawal limts to stop this.