Northern rock, stick the knife in.

**DimPrawn** · 31 March 2008, 17:31

The other banks will follow. Give it a year or so and the only mortgages available will be std rate at 9% APR.

HTH

(Hope That Hurts)

**Turion** · 31 March 2008, 18:20

My advice would be for these over borrowed types to own up and do the decent thing

That would quickly release the affordable housing the FTB's need.

**Cyberman** · 31 March 2008, 19:44

Originally posted by Diver View Post

Northern rock today announced that it will reduce its mortgage book by forcing its current customers to seek other lender, by offering them only their standard variable rates (currently 7.62%) This will affect the hundreds of thousands of borrowers whose Fixed rate mortgages are now ending.
Those borrowers who are unable to find/change to a new lender will just have to pay the ever increasing interest rate.
They predict that there will be an increase in forced repossessions as already struggling borrowers fail to maintain their mortgages under the new higher interest rates, thus relieving Northern Rock of even more of its mortgage burden and enabling the company to be downsized and better able to pay back the public sector loan.

The Nationalisation of Northern Rock is a massive 'own goal' by the government. They are now forced into a one-way street of reducing the mortgage book which in itself is reducing mortgage options to borrowers and pushing those people onto other lenders who themselves are already reducing their own lending due to the very same liquidity crisis(eg: HBOS, Nationwide and Abbey) .

This liquidity crisis is not of Northern Rock's making and it was unfortunate for the bank that they were the first to go to the Bank of England for its 'Lender of Last resort' facility when other banks with similar problems were being granted assistance by their respective Central Banks. Now, rather belatedly and still reluctantly, the BofE is now granting extra funds to other major banks but it is evidently not enough and private individuals and businesses are going to be hit in a big way by this credit squeeze.

The government should not be asking Northern Rock to reduce its mortgage book until liquidity conditions have improved. All that is happening is that the crisis is being exacerbated. Surely that is commonsense, but we obviously do not have much of that commodity with our authorities.

**milanbenes** · 31 March 2008, 19:46

well according to this NRK will be in the black in 2012...

http://www.telegraph.co.uk/money/mai...bcnrock131.xml

Milan.

**BrilloPad** · 31 March 2008, 19:57

Prices have only been kept this high by BTLs. Once prices start to fall it will be a rout.

I look forward to the day when nurses feel they can afford to buy their own place. It is what maggie wanted.

**AtW** · 31 March 2008, 19:57

Originally posted by Cyberman View Post

The government should not be asking Northern Rock to reduce its mortgage book until liquidity conditions have improved.

NR simply has no alternative but to scale down morgage book.

**BrilloPad** · 31 March 2008, 19:58

Originally posted by AtW View Post

NR simply has no alternative but to scale down morgage book.

I agree with AtW on an economc point! someone please slap me round until I come to my senses...

**Francko** · 31 March 2008, 20:01

Originally posted by BrilloPad View Post

I agree with AtW on an economc point! someone please slap me round until I come to my senses...

**The Lone Gunman** · 31 March 2008, 20:03

Good isnt it !
NR overstretch and go running to us when it all goes wrong and we have to pay.
They then force their punters to be overstretched and demand they pay up or get reposessed.

NR should have been allowed to go under.

Northern rock, stick the knife in.