Northern rock

house prices have fell 2% over the last month as well.

for once the US government is not directly to blame. but the reason that the supply of loans to NR dried up is that the US banks lent billions to people who couldn't pay and caused a credit crisis in the US. Since the money markets are global it soon affected uk banks. NR's lending is not the problem it's that it's business model is no longer working. They borrowed money short term and lent it out long term at a higher rate. now no one will lend them money at cheap rates any more, and they havn't enough savers to plug the gap.

the reason a lot of things havn't got better is that labour carried on with most of the Tories policies. You couldn't stick a cig paper between Blair and cameron and Brown invites thatcher round for tea FFS. We haven't got an opposition we just have politicians who swap the government between them and anyone with different policies can't get a look in.

But isn't everyone in loads of unsecured debt anyway? Whether it's connected to the mortgage in some way makes no odds because if they needed that extra money they'd just go elsewhere and get a regular loan. Northern Rock still only borrow people money that they think people can afford to pay back, it's the customers that lie and get into too much debt that they cant handle.

A lot of people are yeah. I just dont think that borrowing money as a deposit for your home is the right way to go about it. Or consolidating debts into it in order to get a better rate for a while. At the end of the day you end up paying for those unsecured loans over 25, 30 upto 40 years. Who would normally take out a 10k loan over that amount of time?

A lot of people who take out the Together mortgage, in my experience don't fully understand the ins and outs of it and i have seen a lot of people who want to get away from northern rock for a number of reasons but find it practically impossible becasue of the way it is organised.

If a personal loan is then taken out to repay the unsecured bit then it dramatically increases the payments so are unffordable in a lot of cases.

For some people, it has worked if they have used the extra to do up a property, i just think it is a risky way to do it the way the market is at the mo

Life is like a box of chocolates............

and I always end up with the coffee cream.

Correct.

I used to do unsecured loan recovery on the Together product and some of the unsecured debt people are in is frightening. People on normal, everyday wages in unsecured debt of hundreds of thousands of pounds. Frightening stuff.

Obviously it doesn't help when retarded NR staff tell them that if they default on the unsecured it will just get added onto the mortgage, whilst failing the mention the CCJ that is required first...

Was just reading that the government have guaranteed the savings in NR investment accounts now - should slow down the panic a bit anyways.....

My mate is planning on buying like 5 grands worth of shares in northern rock soon, hes convinced this will soon pass over and shares will rise back up

at 2.20 it'd be a big payoff if they go back up - were £12.50 at 1 point. saying that, it'll be a looon gtime before they're back up there again (if they ever are)

i waited an hour and a half on the northumberland street one this morning the woman behind the counter advised me not to put my money in barclays, i wasnt anyways but surely she isnt allowed to say that, she said barclays have done exactly the same thing they just havent broadcast it yet?!?!

very worrying

Yeah your spot on there. Its a problem with liquidity.