Jump to content
The mkiv Supra Owners Club

Northen Rock... should I be worried


GeordieSteve

Recommended Posts

  • Replies 69
  • Created
  • Last Reply

Top Posters In This Topic

I've just taken out a Northen Rock mortgage (luckily fixed rate) juuuust before all this trouble has kicked off. Let's say the unlikely happens and Northern Rock goes belly up... where will I stand?:search:

 

 

Out in the street? ;)

 

No I don't think it'll come to that. Foreign money markets slump or something like that. Up and down it goes :)

Link to comment
Share on other sites

You'll be ok - they have enough assets they can liquidate if needs be...but it's just a cash flow issue...not an actual, we don't have any issue.

 

What it is though, in my loose understanding of the markets, is a good time to buy their shares they've more than halved in a year! They may well be a target for a takeover too...

Link to comment
Share on other sites

They're actually quite stable, they just need to borrow a bit of cash to lend to their customers at a better rate than what other lending banks are offering in order to remain competitive.

Basically the banks that lend money to other banks are starting to increase their rates and be a little less free with the lending. This is also why we've seen a few rises in rates independently of inflation recently.

Link to comment
Share on other sites

An excellent time to buy their shares! Its a lot of scaremongering as usual by the media. Was on GMTV this morning, the reporter was reassuring people and the dull tart presenter was really trying to make it sound like the sh1t was hitting the fan.

 

Its nothing, their primary lenders are out of money due to the american sub-mortgage losses so they went elsewhere.

Link to comment
Share on other sites

There's a bit on the BBC site about what would happen if they went bust....basically their loan book (inc your mortgage) would be bought up by other banks etc and you would continue to pay them...

 

But it shouldn't happen in this case. Let the US problems blow over then buy shares in the banks as the shares start to climb....oh and expect the gallows outside NR HQ. Heads will have to roll!

Link to comment
Share on other sites

i'm a mortgage advisor and my NR rep said business is as usual.

 

I'm still placing business with them and not noticed any difference at all....yet;)

 

I should imagine it'll all blow over in a few days and the media will find something else to terrorise the country - maybe another potential petrol shortage - which in itself scares people who don't normally buy petrol go out and buy petrol causing a petrol shortage:blink:

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue. You might also be interested in our Guidelines, Privacy Policy and Terms of Use.