Northern Rock to loan £14bn of mortgages

[miniman]

So, IIRC Northern Rock was synonymous with offering 100%+ mortgages to people who probably shouldn't have had one and who instantly ended up in negative equity, let alone in a falling market. And now the plan is to restart the housing market by... allowing Northern Rock to spend £14bn on new mortgage business and offering 90% mortgages. Presumably to people who can't get funding elsewhere, no doubt because they are too risky.

Genius.

[Adrian W]

NR the mob who only a few months ago, and after the goverment got involved, were pulling mortgages and persuading customers to go elswhere, maybe the first thing they should do is apologise for treating their costomers like st and give their morgages back.

[BB-Q]

So, any ideas why this government owned bank would be so keen to offer mortgages right now?

[Bing o]

And this is the same time that the slack jawed one eyed idiot is making statements about banks returning to sensible lending practices????

GORDON - YOU ARE A BELL END OF THE HIGHEST MAGNITUDE!!!

[cqueen]

Errr... I actually think this is a good idea?

Economy relys on people buying houses but people can't get mortgages, the gov already own a bank so why not start giving mortgages again? seems a no brainer to me, certainly better than giving £bn's to private automotive companies.

cue: Brown is a nob bla bla bla

[NoelWatson]

cqueen said:

Errr... I actually think this is a good idea?

Economy relys on people buying houses but people can't get mortgages, the gov already own a bank so why not start giving mortgages again? seems a no brainer to me, certainly better than giving £bn's to private automotive companies.

cue: Brown is a nob bla bla bla

In six months, when the people who have been given 90% mortgages are in negative equity, will you still think it was a good idea?

[cqueen]

NoelWatson said:

In six months, when the people who have been given 90% mortgages are in negative equity, will you still think it was a good idea?

Shut up. Seriously just quit your friggin negative moaning. Did Brown not say yesterday "FTB's will need a bigger deposit than before".

Exactly.

You are beyond a joke.

[jammy_basturd]

The Badger this morning said NR won't be lending 100%, but may lend up to 90%. He didn't really go into details about lending criteria, who would get the 90% LTV, etc.

[NoelWatson]

cqueen said:

NoelWatson said:

In six months, when the people who have been given 90% mortgages are in negative equity, will you still think it was a good idea?

Shut up. Seriously just quit your friggin negative moaning. Did Brown not say yesterday "FTB's will need a bigger deposit than before".

Exactly.

You are beyond a joke.

http://www.independent.co.uk/news/business/news/rock-plans-pound14bn-more-mortgage-lending-1629553.html

"Chancellor Alistair Darling said Northern Rock would be able to give mortgages of up to 90 per cent"


As a taxpayer, I do not want to be liable for this. Sorry if this is beyond a friggin joke.

Exactly

[Tony*T3]

NR have been quick to reposes or force customers away by raising their rates.

Would you trust NR and get a mortgage off them? I wouldnt. I cant see how they can offer an attractive mortgage deal that betters everyone else.

[NoelWatson]

jammy_basturd said:

The Badger this morning said NR won't be lending 100%, but may lend up to 90%. He didn't really go into details about lending criteria, who would get the 90% LTV, etc.

I wonder if this is another political gesture that will end up backfiring like the recent mortgage holiday great idea

[splodge s4]

Has anyone ever explained that N.Rock has NEVER supplied 100% mortgages? They get such a hard time in the press for their '125%' ltv mortgage & its simply not true, the maximum they have ever done is the same as most other lenders, 95%.

They would give you a 95% secured mortgage then if you needed it a possible 30% UNsecured loan at the same rate as the mortgage. Its no different from taking a Nationwide 95% mortgage then going to your own bank & getting a loan from them, apart from that would be more expensive.

Most borrowers (first time buyers) would take 90% secured & possibly another 15% Unsecured loan to cover the deposit & moving fees, I cant ever remember a time when they borrowed the maximum available.

I just never heard anyone actually explain how their 'together' mortgage worked.

[Bing o]

cqueen said:

Economy relys on people buying houses

And that is exactly what is wrong with the UK right now.

Houses don't manufacture goods, sell things, or get exported.

They sit there and become the subject of C4 makeover shows. That is all they do. They do not add value to any economy on their own.

Only one joker on this thread, and it ain't Noel.

[ipitythefool]

cqueen said:

NoelWatson said:

In six months, when the people who have been given 90% mortgages are in negative equity, will you still think it was a good idea?

Shut up. Seriously just quit your friggin negative moaning. Did Brown not say yesterday "FTB's will need a bigger deposit than before".

Exactly.

You are beyond a joke.

Are you a stooge for the NuLabia?

[cqueen]

Right well we might aswell just give in and accept the doom and gloom.

Good news? nah fk it we dont want to here it, lets stick with the doom.

[Bibbs]

splodge s4 said:

the maximum they have ever done is the same as most other lenders, 95%.

Erm, a close friend has a 97% with NR (and is paying it quite hapily).

[cqueen]

Bing o said:

cqueen said:

Economy relys on people buying houses

And that is exactly what is wrong with the UK right now.

Houses don't manufacture goods, sell things, or get exported.

They sit there and become the subject of C4 makeover shows. That is all they do. They do not add value to any economy on their own.

Only one joker on this thread, and it ain't Noel.

I couldnt agree more (apart from the last bit). But how else are you going to get tens of thousands of people, nay, the whole country back into work? - buy getting the hosuing market fixed. I'm not saying go back to how it was because that was a stupidly unsustainable scenario.

[NoelWatson]

cqueen said:

Bing o said:

cqueen said:

Economy relys on people buying houses

And that is exactly what is wrong with the UK right now.

Houses don't manufacture goods, sell things, or get exported.

They sit there and become the subject of C4 makeover shows. That is all they do. They do not add value to any economy on their own.

Only one joker on this thread, and it ain't Noel.

I couldnt agree more (apart from the last bit). But how else are you going to get tens of thousands of people, nay, the whole country back into work? - buy getting the hosuing market fixed. I'm not saying go back to how it was because that was a stupidly unsustainable scenario.

How can you fix something at an artificially high level? Can you give me an example of when this type of Government intervention in the markets has ever worked out well in the long term? The Government is taking on more and more risk - if we lose our AAA rating, the borrowing costs will soar.

[Bing o]

cqueen said:

But how else are you going to get tens of thousands of people, nay, the whole country back into work? - buy getting the hosuing market fixed. I'm not saying go back to how it was because that was a stupidly unsustainable scenario.

What?

Do you understand economics, what should be driving the housing market?

A strong housing market should be the sign of a good economy, not the driving force behind it, other wise it is built on false money.

Real wealth is created by manufacturing and construction, not buying a house, and selling it on a year later for 50k more.

[Oakey]

cqueen said:

NoelWatson said:

In six months, when the people who have been given 90% mortgages are in negative equity, will you still think it was a good idea?

Shut up. Seriously just quit your friggin negative moaning. Did Brown not say yesterday "FTB's will need a bigger deposit than before".

Exactly.

You are beyond a joke.

How very rude. I've highlighted part of your comment because you seem to have ignored the OP's first comment about NR offering 90% mortgages. Does that sound like 'need a bigger deposit before'?