They are never really stable, but people shouldn't take advise like that on the net. Just think if you listened to them and sold your shares and they doubled the next day?
I know what i would be doing
Hanging myself
Northern Rock gets bank bail out
- Thread starter cheets64
- Start date
They are never really stable, but people shouldn't take advise like that on the net. Just think if you listened to them and sold your shares and they doubled the next day?
I know what i would be doing
Hanging myself
I wouldn't worry too much. It's an unusual situation in the banking world at the moment. NR needing to borrow from the BoE doesn't necessarily mean that they're in financial trouble. Following the sub-prime fiasco in the USA, all financial institutions are being very, very tight with lending money to other organisations. This lack of liquidity means that some banks are being forced to take out loans at high interest rates.
It's definitely not common-place, but I don't think NR will be going under.
It's definitely not common-place, but I don't think NR will be going under.
If I were an NR customer, I wouldn't be worrying yet.
As others have said, banks are tightening up on their intra- bank lending, due to not knowing who is affected by the US subprime 'mis-selling' fiasco. However, I do belive NR have heavy exposure to these subprime bonds, so the fallout remains to be seen.
The BoE would not have lend NR the money if it thought it could not pay it off.
As others have said, banks are tightening up on their intra- bank lending, due to not knowing who is affected by the US subprime 'mis-selling' fiasco. However, I do belive NR have heavy exposure to these subprime bonds, so the fallout remains to be seen.
The BoE would not have lend NR the money if it thought it could not pay it off.
I think the fact that they have BoE backing speaks volumes tbh, I've got a mortgage with NR too, I think the prudent thing to do for us to keep an eye on the situation though. I wouldn't worry too much as a mortgage customer though, the BoE have stated that NR's mortgage portfolio is "sound", so that at least is pretty stable. Even if NR did go under, no doubt the mortgages would be taken over and honored by a 3rd party.
I blame the banks for all their own problems, would you lend money to a single mother who has no job? And I do not see why we have to suffer with higher interest rates due to their poor, short sightedness.
I have also strong views on the greed of Building Societies who changed status to become banks,it has happened to me twice and even though I got a 'bribe' when they changed over I was not amused that they had turned their back on being a Mutual Society which people had fought long and hard for and had to get an Act of Parliament pushed through for them to be able to exist.
I have also strong views on the greed of Building Societies who changed status to become banks,it has happened to me twice and even though I got a 'bribe' when they changed over I was not amused that they had turned their back on being a Mutual Society which people had fought long and hard for and had to get an Act of Parliament pushed through for them to be able to exist.
NR have a mortgage portfolio of about £117 billion, it would take a lot for them to go bust, yes this is something to worry about but if people are sensible and don't start taking panic measures it will be ok.
Everytime i read one of these threads there are people are seem to want a recession, amazes me everytime that they want millions to suffer and lose jobs/houses, do they even realise what a recesssion would do to everyone in this country?
Everytime i read one of these threads there are people are seem to want a recession, amazes me everytime that they want millions to suffer and lose jobs/houses, do they even realise what a recesssion would do to everyone in this country?
I love it how easy it is for all these people to get loans, when someone like me cant have one, never had one, and can repay it VERY easy, for a low sum of money for a new car, no i dont want to go the finance car route as thats just a rip off.
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My mate went bankrupt with over 30k of debt, 23 yrs old and with nothing to show for it.
Yes i agree and it always comes from people who either cant afford their own home or rent and dont agree with buying as prices are goign to fall, they seem to want a reccession for some reason. I have a northern rock mortgage, im not worried at all, they wont go bust.
Might be a good time to start buying Northern Rock shares...
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23193/intraday.stm
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23193/intraday.stm
No so - on the Today, Radio 4 the bank couldn't remember the time time - certainly not since the '70s.
Having that big a mortgage portfolio isn't such a good thing! Their deposits are only around £3bn! Their problem is not being able to borrow enough to support their lending.
anybody with any sense would have sold all their NR shares 3 months ago.
I wouldn't be surprised if their shares are worthless in 6 months time.
Ouch, just noticed on there that Paragon (another mortgage provider) is down over 21% as well.
Wonder if that's just the fallout from NR or if something's gone on there too?
our interest rates are not set by what happens to the banks. they are unrelated. the rate banks lend to each other is totally different from the rate they lend to consumers.
the BoE sets interest rates and banks lend in accordance to that.
i agree that they have got themselves into trouble by buying into bad debt.
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When I went for my mortgage last month, Alliance and Leicester had a good deal, the one i wanted (and got), and the financial advisor said that if you dont get that one you can always get a mortgage from Northern Rock, you pay a lot more back each month but they'll give anyone a mortgage! Says it all really!