northern rock

[snorkelman]

whaddya reckon are we gonna see the whole thing fall on its *albatross* if all its customers queue up to yank their money out?

[Stealthbomber]

Gotta love the fat bird on TV this morning.

 

"They said not to panic. I couldn't access the website or get anybody on the phone so I panicked and I feel a lot better now I have all my money in this here envelope!"

 

Oh dear.

 

More customers like her and they're going to be screwed in a week even if they aren't now.

 

First time this has happened when I've actually got something to lose. Last thing I need is the interest on my morgage going up to 20-odd percent cos of a bunch of chancers in an equity company.

[Chimpy]

29% drop and going!

 

Huzzah for the media!

[snorkelman]

aye they might be best arranging some street muggings then media can run a

 

"man mugged after withdrawing all his cash from northern rock!!!"

 

to dissuade the lemmings from drawing theres out

[eligibb]

supposedly not only is the interest rates for northen rock going to sky rockets, it is going to effect other companies interest rates.

 

i have noticed that shares are being pulled out of ALL finacial companies at the moment.

[Carrion]

omgs its black friday all over again

 

run for the hilzorz you monies am beloging to sopmeone else.

 

or stuff like that.

 

 

ultimatly the housing market in the UK needs to be deflated as its getting far to stupid finacialy to buy homes for people starting out. hell ive got soem cash for it and that still isnt enough for a deposit

 

also it mmay help aleviate the problem by crippling the buy to let merchants (my ex landlord has 2 thousand properties on his books and it was a dad and son opperation)

[snorkelman]

omgs its black friday all over again

 

run for the hilzorz you monies am beloging to sopmeone else.

 

or stuff like that.

ultimatly the housing market in the UK needs to be deflated as its getting far to stupid finacialy to buy homes for people starting out. hell ive got soem cash for it and that still isnt enough for a deposit

 

also it mmay help aleviate the problem by crippling the buy to let merchants (my ex landlord has 2 thousand properties on his books and it was a dad and son opperation)

<{POST_SNAPBACK}>

 

 

Interest only buy to let has been abused in the extremes most landlords are taking the ######, trouble is its screwing up the system for everyone else.

 

eg we rent out several properties all of them at what Id consider more than a fair rent (about half the going rate for equiv properties around here).

 

One of our tentants had a nervous breakdown and lost his job. Not his fault gets in touch and tells us what the situation is I agree theres no issue with him staying on in the flat and claiming housing benefit. He puts his application in and gets knocked back ...because the rent he's paying us is (wait for it) too low.

 

So he either moves out of a flat Im quite happy for him to rent, tries to find one twice as expensive (while sat on benefits with medical issues) that the housing will quite happily pay twice his current rent for because its at the going commercial rate for the area.

 

Which is only that ferking high in the first place cause a load of fur coat and no knickers tossers have taken out mortgages buying over priced properties to rent that they cant afford to put a decent deposit down on to keep the monthly payments at sensible levels

 

End result I told him not ferking likely and he could stay on as long as he liked, took two case reviews and all the way to a tribunal before the bastards got told to back down and agreed to cough up.

[djl]

First time this has happened when I've actually got something to lose. Last thing I need is the interest on my morgage going up to 20-odd percent cos of a bunch of chancers in an equity company.

<{POST_SNAPBACK}>

 

Thankfully, one of the knock-on effects of this "credit-crunch" emanating from the States at the moment is that none of the banks are particularly willing to underwrite private equity takeovers, because there are so few in the market willing to buy the debt-linked loan notes. So hopefully that should keep the private equity sharks away from this particular sinking ship.

 

I'm a NR mortgage-holder myself, and I think the most likely outcome is that one of the other big banks (I'm thinking HBOS here, which has a fair amount of liquidity, and never could resist a fire sale) will buy the mortgage business off Northern Rock (in much the same way that the Co-Operative Bank acquired their credit card business a couple of years ago).

 

Having said that, if someone is intending to grab themselves' a bargain and come to NR's rescue , then snap up some NR shares if you can whilst they're still at bargain basement levels - because probably everyone else will get the same idea after the weekend. Or they could just continue to give the share price a good kicking, seeing as it's so much fun .

[Night_raven]

Sounds nasty from NR's point of view.

 

Which company honestly lets themselves get into a financial state like they have?

[Spedz]

So inform Arnies. me what's actually happened? D:

[GuzziHero]

Well, the interest rate on emergency lending went up the last 3 weeks in a row after several banks (if Im right, Barclays was one) had to emergency borrow from other funds.

 

Personally I wouldnt be surprised if we are heading for a global recession thanks to Bush-Baby and his pet war. A devalued $US is finally knocking onto other markets. Im just really shocked that it hasnt happened before now.

[Spedz]

Bugger. :/

[twiglet]

Systems at 32%

 

Seems to be slowing if nothing else

[creepingfear]

Global Anarchy. Can't wait. Looking forward to it.

 

This earth of ours is well and truly over-due for another global scrap............

[alastairthegreat]

Well, the interest rate on emergency lending went up the last 3 weeks in a row after several banks (if Im right, Barclays was one) had to emergency borrow from other funds.

 

Personally I wouldnt be surprised if we are heading for a global recession thanks to Bush-Baby and his pet war.  A devalued $US is finally knocking onto other markets.  Im just really shocked that it hasnt happened before now.

<{POST_SNAPBACK}>

im pretty sure northern rock didnt even borrow any money, they simply had their application to borrow funds from the bank of england in an emergency accepted.

 

but why let that stop a good panic story

[gazchap]

Yes, the media are just overegging the omelette as they are so often wont to do. The gits.

 

Northern Rock are not in any appreciable financial trouble, and they've actually gone on record to state that even though their customers have withdrawn a total of TWO BILLION pounds worth of money from their accounts since Friday, it was less than they anticipated would be withdrawn.

 

Northern Rock probably won't exist this time next year as a brand. The company/organisation itself will still be there, but it will most likely have been purchased by another bank.

 

Personally, I'm currently in the final stages of moving my mortgage away from Northern Rock, but this had nothing to do with any of this and more simply because of their interest rates after my fixed term ends, and their incessant postal bullying trying to get me to take out a new mortgage product.

 

Seriously, since June I've been averaging about three letters a week from them with offers in.

[creepingfear]

Isn't that harrassment.

 

Just think of the distress they have caused you with all those constant mail shots *ker-ching*

[snorkelman]

shares down another 40 percent today looks like the lemmings arent just the ones stood in the queues

[TwinTurboCH]

I love how RETARDED the british public is.

 

Anything up to £3000 in a bank account is GUARANTEED by the GOVERNMENT to 100%

 

Anything up to £30000 in a bank account is GUARANTEED by the GOVERNMENT to 90%

 

So basically, 98% of the losers pulling their money out had NO NEED to do so, and all this panic is only costing THEM money and causing the bank to lose more value, so the ones bringing down the bank are in fact it very own CUSTOMERS.

 

Yay for the retard public, another nail in the coffin of 'Great' Britain.

[Spedz]

Well that's what happens when a lack of detailed, fairly vague and subjective news report are broad casted on a regular basis.

Also Bradford and Bingly are suppose to be also effect with this event. While agree with you, TwinTurboCH that people today on the whole are pretty ignorant on the whole.

[Ghola]

Not just Bradford and Bingley, apparently Alliance and Leicster are having issues aswel.

 

Alot of people are mentioning this is a sign of a housing market crash but to be honest i think weve all heard that before.

 

Personally, as someone who wants to buy a house soonish its rather scary. Should i wait and see if they drop? Should i buy and possibly get lumbered with a huge morgage and then have it slump? Meh, cant take all the risk out of life can you.