Northern Rock - Nightmare

beecher

Tillydot wrote: »

blah blah blah

I don't see the point in posting lookin for advice and then getting angry when people say things you don't want to hear. Cardinal Red has given you some really good pointers - hopefully you'll come back to look at them one day, but good luck in paying off the mortgage while on the SVR. Hope it all works out for you.

Cardinal-Red

Tillydot wrote: »

blah blah blah

Ha ha ha ha ha.

sammyjammy

Tillydot if you having rescue animals isn't any business of the other posters I'm at a loss to see why you added this personal information to your post? I'm an animal lover too and I applaud you for taking rescue animals in however I'm sure if it was a case of a roof over your family's head or having to find a new home for the animals then you would make the right decision, after all if you ended up repossessed they would throw the rescue animals out as well.

As far as business is concerned money is money is money, feelings don't come into it I'm afraid.

Sam

teabelly

Where did you get your valuation from for your property? You can appeal valuations but you need sound evidence for comparables ie sold prices recently and estate agent valuations that back up your assumption. Is there anything you can do cheaply to improve the valuation eg lick of paint? Is there room for a lodger or paying guests either human or animal?

Your first task is to make sure you don't get repossessed so you need to get the arrears sorted out even if it means moving some of the animals to other rescue homes to cut costs. No landlord will want loads of animals so unless you want to risk having the lot of them put down because you can't afford to feed or home them you need to cut your costs or increase your income or both to live within the means you have right now. It's not being moral it's just being pragmatic and if you don't have the money to look after family and animals you will have to prioritise and decide what the money gets spent on.

tonyhamm

Maybe its better to 'kick out' your daughter and baby, on the grounds they will be rehoused as homeless by the council.
Then get in a lodger under the rent a room scheme and get around 5k tax free pa.

Wishing for NR rates to come back down again is not going to happen.

If anything interest rates could rise to counter rising inflation, and BOE policy will maintain price stability as thats the best long term way of providing jobs and rising living standards.

The BOE may tackle any systemic financial distress on the part of the lenders by rolling over the loans of lenders in trouble like it has been doing. The ECB has already adopted this policy.

MarkyMarkD

Part of the problem with NR's business model is that their borrowers were virtually all on trackers or fixed rates - hardly anyone paid the SVR or a rate related to it.

So when the credit crunch hit, raising the SVR wouldn't do them any good - hardly anybody would have paid them any more.

It was a flawed model.

But now that people are getting stuck on their SVR, in their droves, I think the belief that they won't push it upwards out of line with other lenders is unlikely to be accurate. They need to do everything they possibly can to push borrowers away from them, and apart from telling customers rolling off to SVR that they might as well leave, increasing SVR is the next most obvious way to do that.

EdInvestor

MarkyMarkD wrote: »

I think the belief that they won't push it upwards out of line with other lenders is unlikely to be accurate. They need to do everything they possibly can to push borrowers away from them, and apart from telling customers rolling off to SVR that they might as well leave, increasing SVR is the next most obvious way to do that.

Looked at from a pure financial point of view, this is how they should behave.But we have to remember that this is also a politicial issue. NRK is a Government owned bank.

The press is splashing today on 25% of homeowners facing negative equity in the next year and being unable to remortgage.A significant number of these people are going to be from NRK because it had a 20% share of the market when the problems started and many of these punters were on the 125% LTV "Together" mortgage.

Although it is clearly important for NRK to pay back its Govt loans, there's no way it will be required to create a broad property crisis to do so.Expect action to make life more manageable for these borrowers quite soon.

MarkyMarkD

NR already seem to be quite happy to push up their level of repossessions. I am not as confident as you are that the government will pressurise them to make life easier for their borrowers.

The truth is that everyone rolling-off their products who is a decent credit risk will leave. NR will necessarily get left with a lot of bad credit risk customers and that will necessarily lead to lots of defaults and hence repossessions. Honestly, it would be stupid for the government to treat these borrowers anything other than realistically. You are right, though, that nothing is really going to be achieved if the SVR is pushed up too much. Just having an SVR at the top end of the market is enough to push the more mobile customers away.

tonyhamm

Thats exactly right.

The poltical consequences for not moving the bad credit off the books is far far worse.

The more bad credit customers that NR pushes away to other lenders the better they are for it, i.e. taxpayers and the government - Brown will look smart if they can get rid of most of the risky mortgages off the taxpayers books and onto other lenders or repossessed and sold off. .

I well remember seeing the normally neutral newsreader reading the news of Northern Rocks nationalistion on tv, in wobbly disbelief and shock at what he was reading - that each man woman and child was on the hook for £1800 and you could see several thoughts darken his counternence. The whole country is on the hook for this bad lending now, and seeing some people get repossessed is a poltical positive as many families are worried about thier youngsters getting a home!

bunterpunter

It appears NORTHERN ROCK don't want your savings either.I have a silver savings online account and have just been given TWO days notice of a 0.25% rate reduction,so assuming the BOE reduces rates by a further 0.25% next week, NR will follow suit thus obtaining a 0.5% rate reduction for their savers.I wrote to them thanking them for their short notice of rate reduction at the same time wondering why rate INCREASES weren't accorded the same speed.I received the following ,in my view,incredible response!
"Dear Customer,
Due to the business plan that Northern Rock has released we will not sustain a prolonged presence as a market leader in the market place or in any other category."
Make of that what you will.... I'm voting with my feet!