If I earn £32k per year

Ember999

meanmachine wrote:

Because NR have crazy lending multiples.

And because NR lent a mate of mine 7 times their wage.

And because NR are growing at a huge rate - because they offer loans that more prudent companies wouldn't touch.

Need I go on?

In that case then Good Luck to Northern Rock and all who get mortgages with them With houses costing so much more than they used to, seems to me that a lot of people wouldn't be able to buy their own home without a Mortgage Company letting the borrower decide if they can afford the mortgage rather than either the government or Building Societies deciding for the buyers (who without Northern Rock would be stuck paying out the same money in wasted rent!).

jockettuk

even if northern rock give first time buyers morgages and loans to others and all the other things you say they do then good luck to them. but as all banks and lenders do if you default they kick your butt so if you cant afford it dont do it but lay of northern rock for giving the little guy a foot on the ladder

Robert_Sterling_3

I have shares in Northern Rock.
The shares are doing very well.
They are good at what they do.

Ember999

Nice to see some others having a good word to say about Northern Rock. It's about time some of us stood up for them against MeanMachines constant bashing!

jockettuk

if mean machine dont like them thats up to him if he had a bad experience then fine share it amongst us but let us make our own minds up abt companies.. some people only got onto the property ladder because northern rock took them on,, good on them i say..

Phonix

if mean machine dont like them thats up to him if he had a bad experience then fine share it amongst us but let us make our own minds up abt companies.. some people only got onto the property ladder because northern rock took them on,, good on them i say..

The brutal truth is that profit is the over riding factor here.

meanmachine_2

Yes good ole Northern Rock helping the little man take on a vast mortgage.

And I'm sure Northern rock will be helping the little man out onto the street when he can't pay that mortgage, borrowed on 5.9 times his earnings.

But you're all right. Let people make their own mistakes. That's life after all.

Ember999

meanmachine wrote:

Yes good ole Northern Rock helping the little man take on a vast mortgage.

And I'm sure Northern rock will be helping the little man out onto the street when he can't pay that mortgage, borrowed on 5.9 times his earnings.

But you're all right. Let people make their own mistakes. That's life after all.

Yeah, that is life Meanmachine! Not all people borrow 5.9 times their salary to buy a home, the vast majority wouldn't be so stupid I imagine. But at the end of the day, you constantly attack a Building Society that at least allows people the chance to buy their own home. Northern Rock has no more re-posessions than any other Bank/Building Society, showing that defaulters can occur with banks/building societies that only allow small multiples of loan versus salary. It's people who default, not the fault of the lender! I like Northern Rock as do many of their other thousands of customers!

whiteflag_3

Hi hon

Ember can you help me understand why Northern Rock are good

We have a mortgage with Northern Rock and we have an A+++ credit rating, had huge deposit and very large salary. Yet, we chose to go with Northern Rock

Why NR when there are so many better/ cheaper deals out there?

Northern Rock has no more re-posessions than any other Bank/Building Society, showing that defaulters can occur with banks/building societies that only allow small multiples of loan versus salary

Can you supply the source of this information?

It's people who default, not the fault of the lender!

As a former member of the Chartered Institute of Bankers in Scotland, I was always told that the basis of any loan should be the ability to repay.
When Northern Rock changed from a building society to a bank they seem to have thrown out the rulebook and lend on the value of the security!. It should be the lender who is the reponsible party shouldnt it?
If all lenders had stuck to the old 3 times salary rule prices wouldnt be so high. What we have now is a self fullfilling prophecy

EdInvestor

If all lenders had stuck to the old 3 times salary rule prices wouldnt be so high.

That's just silly.3 times salary was based on the old high inflation/ high interest rate days when you were paying 10%, often as much as 15%, interest on the loan.

Work out how much that was per month (and check out salaries in those days)!

There's no way you could enforce 3xsalary when people can so obviously afford to pay much more.

Next you'll be saying we should go back to the old building society cartel days when banks were banned from mortgage lending (I kid you not). :eek:

Home ownership was well under 50% of the population back then, and you had to go down on your knees to the BS manager. Single people and women didn't even get into his office....