Northern Rock Nationalised

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Just blame climate change.
too much taxes caused people to borrow more as they had nothing left over from their wages.
they then refused to pay back as the taxes went up higher due to climate change.
So the bank collapsed
 
I've got an NR mortgage as well. Possibility that NR could up the interest rates to make them so uncompetitive that mortgage holders will remortgage elsewhere and NR's loans will therefore significantly decrease making it look at lot better on paper. Waiting to see as I have a "loyalty" bonus on mine that keeps it 1.5% below their standard variable.
Suspect all bets are off though :(
 
If you have a NR mortgage that you want to get out of this may be a good time.

I'm sure that they would be happy for you to pay your mortgage off by remortgage elsewhere - good for cashflow.

I wonder if they would waive the penalty should you wish to remortgage and give them some money?
 
read this - all is not what it appears at NR? Will be interesting to see who owns Granite if it indeed has the cheeries from the NR mortgage book. so are we (taxpayers) left holding the chaff? as with all these things time will tell i guess

http://news.bbc.co.uk/1/hi/uk_politics/7254451.stm
 
Northern Rock is in windup mode. Gobmint is just playing for time in the hope it does not die and stink the place up before the next election.

They are already shrinking their mortgage book by charging 1% to 1.5% above market rate for new business (and thus not getting much) and as people are rolling off fixes doing the same to the higher risk mortgagees to encourage them to remortgage elsewhere.

They will however be nice to the "good" Mortgagees who are still on their balance sheet because they represent a saleable asset and do not want them to clear off just yet.

Bits of the performing mortgage book have already been sold off and what is capable of sale will go as soon as conditions permit. Branches are to be sold and other assets are on the block.

Very soon now they will have to stop offering high interest rates like the 6.49% one year fixed interest bond which people are piling into bigtime as it is now effectively risk free because EU legislation prohibits state backed banks from taking advantage of their status. (Same happened in Germany a while back so that the many dozy Landesbanks could no longer get cheap money thanks to their AAA rating and make profits very easily. No, they had to find high yielding assets and so pitched into Sub Prime........:crazy: )

All that the Government will be left with is a residuary Regional Mortgage and Savings bank with a portfolio of inert investors and lower grade mortgages nobody else really wants. Not a great deal of value in that.

You get a clue to what is going on from the arrangements with the Northern Rock Charitable Trust. They have been guaranteed a certain income from Northern Rock for three years. After that? Er............

The current stuff about Granite is just political stirring. That is how Northern Rock and the rest of the Mortage Repackaging and Securitisation Industry works.

The taxpayer will never see the bulk of the money this stupid Government has dumped into Northern Rock back. The whole thing is simply so wrong and built on irrational assumptions it is almost certain to be an utter fiasco. No surprise then that tucked away in the draft legislation to bring it in to public ownership is a clause that exempts it from the Freedom of Information Act.

And just to add that if you have any Northern Rock shares you are pretty well stuffed. The legislation forces the compensation valuation to be done on the basis that it is not a going concern and in administration. Which is a novel concept for a bank still doing business.
 
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???
:)
Reference please!

Gobmint: satirical and pejorative internet term for "Government"

As in:

"Y'all complain dat de Gobmint ain' doin' 'nuff fo dem po folk in
Nawlins to get dem outta dat mess, and den when de Gobmint goes
and does sumpin to get dem outta dat mess, den y'all complain
'bout dat, too."
 
is this a scam or is it for real?
A friend of mine just said northern rock has called telling them to transfer their mortgage elsewhere and that if they want to stay with them it will cost £2000.
His is coming to end soon, but mine is fixed till 2011.
I am not moving anywhere as I feel I am in pole position as the government will legally be unable to repo my home when I am paying my mortgage and refusing to switch
 
is this a scam or is it for real?
A friend of mine just said northern rock has called telling them to transfer their mortgage elsewhere and that if they want to stay with them it will cost £2000.
His is coming to end soon, but mine is fixed till 2011.
I am not moving anywhere as I feel I am in pole position as the government will legally be unable to repo my home when I am paying my mortgage and refusing to switch
Nah they all do this, I got a letter telling me I have to rearrange my mortgage because my two years fixed is up (it's not, it's barely 18 months!) and they want either £1600 or £2000 to rearrange it or they are going to put me on their "long term variable" which is base rate plus about 5% to make their other deals seem good.

Actually now it's typed it reads like a scam...
 
My mortgage is with NR; does this mean Gordon can pop round with a spare key anytime he wants? Is there a law against that? Can I chop his head off with excalibur? Or am I thinking of the King of England...

http://news.bbc.co.uk/1/hi/business/7249575.stm

It actually means that we all own a bit of your house...I'm going to come around tomorrow to make sure you are looking after my "investment" properly - make sure you're in between 07:00 and 19:00 as I'm not sure what time I'll be there :D
 

I am not moving anywhere as I feel I am in pole position as the government will legally be unable to repo my home when I am paying my mortgage and refusing to switch

I wouldn't rest easy on this logic.

HMG repossess assets, sends in bailiffs/sheriff officers, winds up businesses, and imprisons people on a daily basis.

At the end of the day the logical way to deal with the Rock mess is to wind down new business - dump the staff and the operational assets - and outsource the mortgage book to be managed by another institution
and take a cut of the profits.

Over a long period of time HMG should get its money back with interest.

The losers are the shareholders and staff - but that's what happens when a business takes a fall.
 
the logic is as long as i am paying they cannot repo my home.
If they sell the business, a new contract will have to be drawn up by the new owners if NR is liquidated.
why should i switch willingly when i have done nothing wrong. unless it is sold on, the government have to sdeal with NR and its problems as the new owners
 
the logic is as long as i am paying they cannot repo my home.
If they sell the business, a new contract will have to be drawn up by the new owners if NR is liquidated.
why should i switch willingly when i have done nothing wrong. unless it is sold on, the government have to sdeal with NR and its problems as the new owners

As long as you are paying what they are charging ...

And embedded in the small print of your mortgage will probably be words to the effect that they can reassign it as they wish should they be taken over or sold.

The only issue you really have is whether or not you are locked in for any period plus any associated penalties. As long as you can remortgage somewhere else then so what?

AFAIKT the only people who really need to sweat are those with loans >100% of their equity and/or personal circumstances that mean they can't remortgage. Their room for manoeuvre is limited.
 
well do not forget the bad press if the government is seen to be kicking people out of their homes as well.
It could well be a legal battle the government will be willing to avoid.
I am fixed for 5 years. if they want to move me they will have to incur the charges not me.

i shall keep an open mind though. I will be ready for any eventuality
 
well do not forget the bad press if the government is seen to be kicking people out of their homes as well.
It could well be a legal battle the government will be willing to avoid.
I am fixed for 5 years. if they want to move me they will have to incur the charges not me.

i shall keep an open mind though. I will be ready for any eventuality

I wouldn't worry about NR (as it's still called whoever now runs it) trying to repossess your home. As long as you keep up the repayments no county court district judge will grant a possession order.

On the other hand, if you're on a poor interest rate and your mortgage is not classed 'sub-prime' you may be able to remortgage away from NR to another lender without paying penalty interest - assuming they need the cashflow that is.

A third issue may be that if you have a variable rate mortgage the NR may fail to pass on interest rate reductions to you and price you out of their mortgage book, i.e. make your payment so uncompetitive that you will move your borrowing elsewhere.
 
well do not forget the bad press if the government is seen to be kicking people out of their homes as well.
It could well be a legal battle the government will be willing to avoid.
I am fixed for 5 years. if they want to move me they will have to incur the charges not me.

i shall keep an open mind though. I will be ready for any eventuality

As I said HMG quite happily goes after people for money - regardless. It's totally routine for them so be under no illusions.

If you're on your fix for five years then the only issue you have to worry about (as long as you keep paying) is what happens after the 5 years. And you were in that situation anyway. So really - no change.
 

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