Northern Rock - poor loan book, bad debts up, losses
Discussion
I have a personal loan with Northern Rock, I got a great rate 2 years ago I'm comofortably able to make my repayments. I was going to settle the debt in the new year, however, I will probably let it run for the duration of the term (4years) as the payments are so low and I don't notice the money coming out.
Article said:
The faster-than-expected progress with paying off the £29.6bn it owed the Bank of England at the end of last year is a result of the way it has been encouraging borrowers to pay off their mortgages early or move their business to other banks.
Great strategy. Show the good risks the door, leaving only the poor risks who can't refinance.HundredthIdiot said:
Article said:
The faster-than-expected progress with paying off the £29.6bn it owed the Bank of England at the end of last year is a result of the way it has been encouraging borrowers to pay off their mortgages early or move their business to other banks.
Great strategy. Show the good risks the door, leaving only the poor risks who can't refinance.Well I have one more loan repayement with them and then I shall never have to speak to them again!
It is a complete fiasco but who would have predicited against that happening on PH?
I also saw that the Gov are considering paying people to scrap fuel guzzlers, up to £1000 a car, that could be a nice little earner depending upon the conditions.
It is a complete fiasco but who would have predicited against that happening on PH?
I also saw that the Gov are considering paying people to scrap fuel guzzlers, up to £1000 a car, that could be a nice little earner depending upon the conditions.
Bing o said:
miniman said:
I may be grossly naive, but where the f
k is this extra £3bn of equity that the government is injecting coming from? My pocket, I presume.
You must be rich then!!k is this extra £3bn of equity that the government is injecting coming from? My pocket, I presume. Lend us a tenner...
In fact, lend me £2,500 and I'll make a night of it....
SplatSpeed said:
Bing o said:
miniman said:
I may be grossly naive, but where the fk is this extra £3bn of equity that the government is injecting coming from? My pocket, I presume.
You must be rich then!!k is this extra £3bn of equity that the government is injecting coming from? My pocket, I presume. Lend us a tenner...
In fact, lend me £2,500 and I'll make a night of it....
G-Rich said:
The £500M loss is somewhat overshadowed by the £9.5Bn loan repayment made to the government.
Whilst the whole NR fiasco is typical of this governments inability to manage a p!ss up in a brewary, they look to be getting back slowly. It's daft really, almost as if it were planned...
How does this work then - they repaid 9.5bn and are getting a cash injection of 3bn???Whilst the whole NR fiasco is typical of this governments inability to manage a p!ss up in a brewary, they look to be getting back slowly. It's daft really, almost as if it were planned...
Is that the same as saying they repaid the original lone completely and are now getting a cash injection of 14bn?
<LOL> my mort is with NR, and I fixed the rate for 15 years :-)
with the way the rates are going Im tempted to take out my over payment ( essentially borrowed 120k more than I needed and then payed it back to them) and stick it in a high interest account. I can make a few percent on it
in fact I could even put it in an NR svaings account
happy enough with them do far....
with the way the rates are going Im tempted to take out my over payment ( essentially borrowed 120k more than I needed and then payed it back to them) and stick it in a high interest account. I can make a few percent on it
in fact I could even put it in an NR svaings account
happy enough with them do far....
Edited by Graham on Tuesday 5th August 08:44
Graham said:
<LOL> my mort is with NR, and I fixed the rate for 15 years :-)
with the way the rates are going Im tempted to take out my over payment ( essentially borrowed 120k more than I needed and then payed it back to them) and stick it in a high interest account. I can make a few percent on it
in fact I could even put it in an NR svaings account
happy enough with them do far....
We call this arbitrage with the way the rates are going Im tempted to take out my over payment ( essentially borrowed 120k more than I needed and then payed it back to them) and stick it in a high interest account. I can make a few percent on it
in fact I could even put it in an NR svaings account
happy enough with them do far....
Edited by Graham on Tuesday 5th August 08:44
Fittster said:
Puggit said:
Heard a stat on R5 this morning that repossessions by NR are up c70% in the past 3 months.
What a friendly government we have...
Would there be less repossessions if NRK was still a private company?What a friendly government we have...
NRK might not be able to heed that message as the %age of bad debts they have is increasing while good borrowers go elsewhere.
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