first Northern Rock now HBOS

Halifax_sux

first there was the Northern Rock problem, which i guess is now sort of sorted.
today there was a run on HBOS.
eventually one of these big financial institutions will fail and the government is not going to help, or be able to help, them.

general question:
we know that savings are safe, up to a certain limit, but what about mortgages?
if HBOS failed today would everyone which an HBOS mortgage get evicted?

p.s.
does anyone but me regret all the mutuals converting to plc's?

taxi73

according to the news yesterday there is nothing wrong with HBOS!!!..it was all false rumours that led to insider trading etc and the FSA stepped in straight away due to suspicious activity on the stockmarket...
People will not get evicted if any bank goes bust as somebody will take over the mortgage books.

Markyt

HBOS doesn't have any problems - someone selling short was attempting to drive the price down.

Mortgages would get sold on to another company, home owners wouldn't see any change.

Plenty of places are still mutual.

sarkin

Lots of rumours who do we believe, the Credit Curnch is making everybody nervous. Maybe the rumours are true but BoE and UK plc cant afford another NR. Now you can see why the investment banks dont want to lend to anyone. So is HBOS in trouble no one knows only time will tell.

Treadmill

I would think that somebody has made millions spread betting on HBoS, I guess it had to happen, there is a danger though that rumours and misinformation can become real, thats how a run on a bank starts.

Sooler

HBOS - safe as houses, even the BBC are holding back from whipping up panic as they did with Northern Rock.

beecher

Halifax_sux wrote: »

first there was the Northern Rock problem,
if HBOS failed today would everyone which an HBOS mortgage get evicted?

why on earth would that happen? This is just how crazy rumours start. Even if a bank did fail, no-one would be 'evicted'!

Dan_Collins_2

Well all the big wigs are meeting from the banks and BOE so we shall see.

But lets not pretend times have not changes. UCB and Mortgage works have pulled lending back so far its unreal. They are taking the submission channel offline for a week. They are part of Nationwide, the biggest balance sheet lender in the UK, may be even Europe.

HBOS has brought back criteria for BM as this is the high risk side of HBOS. But we have not seen LTV changes etc like form other lenders.

Its time we faced up to our bad lending and borrowing habits.

beecher

Dan_Collins wrote: »

Its time we faced up to our bad lending and borrowing habits.

Definitely. People have to start thinking in terms of saving up for things they need, and start to make the distinction between what they need and what they want - two very different things. But it does help not to be hysterical, as I feel the OP is being with talk of immediate evictions of anyone with a HBOS mortgage.

Pippa88

Intelligent Finance (HBOS's online bank) have the folowing clause in their Terms and conditions:

"F.2.4 If we give you at least three months notice, you must pay us the mortgage debt in full by the time the notice runs out"

No mention of being late with your mortgage payments or breaking any conditions, it appears that if they want their money back for whatever reason, they can ask for it, and presumably if you can't pay up, they can take your house and sell it for peanuts!

It would be interesting to see if this clause applies to all HBOS mortgage products.

Halifax_sux

hang on a minute!

i said:
"today there was a run on HBOS. eventually one of these big financial institutions will fail"
i KNOW that this particular glich was only a result of some vultures!

plus, i thought i was asking a reasonable question. maybe my wording wasn't as good as it might have been but i did post at 4:16 am!!
if a mortgage WAS sold on, it stands to reason that the sale would be done at a "discount"
- which is exactly what's caused the current situation!
maybe the company that buys the debt would be less "nice"
- especially if the mortgage was in arrears.

... then there's my thoughts regarding mutuals.
is no-one admitting to wondering if they were right to vote for those windfalls?