n.rock - the outlook for potential investors?

jamescredmond

So this morning nr announces the repayment of the £24BN gov. loan by 2010 and says goodbye to applegarth with a £760k pay-off.
it also declares that its business plan is to be 'competitive' within the market and will no longer seek to be 'market leader'.

in an 'about face', it will look to source funding from individual investors (i.e us) in the main, and partially close the door to the methods of funding that got it into so much grief in the first place.

now then, now then..

is nr about to become the next 'best buy' savings vehicle?

bristolleedsfan

jamescredmond wrote: »

is nr about to become the next 'best buy' savings vehicle?

It has been since the turn of the year, and is currently in the best buy tables with the added advantage of a 100% savers guarantee.

http://www.moneyfacts.co.uk/savings/bestbuys/fixed-rates-isa.aspx

http://www.moneyfacts.co.uk/savings/bestbuys/savings-over-50-accounts.aspx

ianmr65

BLF, is completely correct, Tho the EU are taking a dim view, and think NR is being unfairly supported, and skewing the market, so may try to clamp down.

nicko33

If the Govt want NR mortgage customers to go elsewhere, which they can encourage by raising mortgage interest rates, then the the other mortgage providers will need funds available to lend to the ex-NR customers.
So the Govt will probably also want the NR depositors to dwindle away (slightly slower than the mortgage customers), which they can encourage by lowering savings rates. Probably down to something as "competitive" as the big high street banks eventually.

I guess.

bristolleedsfan

nicko33 wrote: »

If the Govt want NR mortgage customers to go elsewhere, which they can encourage by raising mortgage interest rates, then the the other mortgage providers will need funds available to lend to the ex-NR customers.
So the Govt will probably also want the NR depositors to dwindle away (slightly slower than the mortgage customers), which they can encourage by lowering savings rates. Probably down to something as "competitive" as the big high street banks eventually.

I guess.

True, thats whats happening, NR morgage customers are being encouraged to go elsewhere, whereas savers have been encouraged to go to NR due to what has been since turn of the year high rates and 100% depositors guarantee.

This is one contributing factor to the interbank lending rate having gone up to 6% ish as of last week.


http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=299678&Page=1

nicko33

How the Govt makes NR an attractive prospect to return to private ownership after it's "temporary period of public ownership" is another matter.

In theory, if the public money is repaid, could be dumped back into the market as a mutual building society again?

Indispensable_Hobbes

We (NR staff) were told the plan is to reduce the amount of mortgages and focus on savings while the BoE loan is being repaid and the business starts to recover.

Following on from the announcement of the figure of redundancies we were told that all of the branches would remain open... easy access for customers to put their money in. As with anything though, that might change in the next day or so.

ianmr65

Meltdown gives some pretty good details on the EU position on NR

http://forums.moneysavingexpert.com/showthread.html?t=830825.

And i think that 2010 at the very outside, to pay back the loans. As they will want NR back in private hands before the next election which is May 2010 at the very latest. More on this too in the other post.

bristolleedsfan

jenyking wrote: »

We (NR staff) were told the plan is to reduce the amount of mortgages and focus on savings while the BoE loan is being repaid and the business starts to recover.

Following on from the announcement of the figure of redundancies we were told that all of the branches would remain open... easy access for customers to put their money in. As with anything though, that might change in the next day or so.

Mr: 90000.00 a month apparent smoothie brief is clearly to keep NR staff sweet in the short term so as to avoid disruption whilst its paying off the BoE loan.

Indispensable_Hobbes

don't think theres any way of keeping us sweet, 2k are heading for the axe, we're all going in and doing what we do.. nothing else we can do really. what would causing disruption achieve?

bristolleedsfan

jenyking wrote: »

what would causing disruption achieve?

Nothing, would be very damaging though which is why Mr Smoothie is playing it cool.

My belief is that when ( if) the BoE have been paid off the remains of NR ( if their are any remains) will be snapped up by another Financial Institution.