Staffi

iTrader: (1)

Anyone have any shares in them?? 23% drop just today..

RichieST

iTrader: (2)

I was just about to post up atbout northern rock - I have a loan with them, I currnently owe about £3000. Whats going to happen to it?

Rich

Staffi

iTrader: (1)

It's now gone up tp 10 k..

Seriously, good question, will they go bust?? they reckon they're something like 147 million in the shit.

dvid

I owe em £4500, so as above what will happen?

Trist

I owe 150k mortgage??? anyone know anymore

The DIVA

iTrader: (3)

The are not in the shit at all,talk about scaremongering...

The banks that they routinely borrow off have stopped lending to try and cover their own fook ups so basically Northern Rock have been left a bit in the lurch through no fault of their own.......

This problem all started with the Yanks giving mortgages to all the crackheads to kickstart a property growth and it`s bit them severely in the arse....

Dan

I have finance with them too, what the fuck is going on?

The DIVA

iTrader: (3)

Oh and by the way,buy some shares quick......the problem will be very short lived hopefully so you will be guaranteed aty least a 20% growth on your investment when they return to normal...

Dan

You reckon Robbie, serious?

The DIVA

iTrader: (3)

Deffo mate,they are a very solid growth bank with no serious financial problems and they are very well run.......they have been affected first because they are one of the biggest.........i am sure this problem will resolve itself sooner rather than later....

blahblahcarsblah

Wouldn't worry just spoke to blokie (regional lending manager Northern Rock) and he says it's a whole lot of fuss over nothing. NR haven't even taken any money from Bank of England, they asked them if they could if they needed to like an overdraft, they aren't the only lender that approached Bank of England but the other lenders were turned down as not a good investment NR were approved so they all over the papers

As for savings things like that wouldn't worry at all.

Nick D

They have well over £100 bn in assets so they are not going to go bust.

And as the Diva said i'd getting buying shares asap, i've just invested at 8.30 this morning quite a healthy sum of which I expect a minimum of 8% return on by next year!!

Ex-Finesse

I wouldn't say it's not Northern Rock's fault.

They're primarily a mortgage lender and not a bank, so don't have the same reserves a normal bank does.

In addition, Northern Rock have expanded rapidly by offering mortgages of more than 3x your earnings, at good rates. You can instantly see that this is riskier behaviour than most, and their profit margins are far slimmer.

So in my opinion it is the banks fault. They accepted the risk and it has come back to haunt them.

Depends if you're a bull or a bear as to whether you think shares will bounce. Could get a whole lot worse though....

The DIVA

iTrader: (3)

You obviously have no understanding of this particular situation mate....

Northern Rock are a financially sound company that has had a solid growth based on good practices,their portfolio carries no greater risk than anyone elses and they currently have £113 Billion in assets and £24 Billion in customer deposits.....they do have a large operating reserve,what they are saying is that if the lending situation from other banks carries on,they MAY need an emergency cash injection from the Bank of England to keep cashflow stable.....

WTF has that got to do with 3x lending and decent rates......it`s this narrow sighted attitude that causes such big share fluctuations when everyone panics..........

Shings

Might have a pop on monday...

How long for a resonable return Rob?

MAD EVO 4

How can we go about buying a nice lump of shares then

The DIVA

iTrader: (3)

I`d like to think you would see a reasonable return within 12 months Jake,maybe a lot sooner depending on how the situation develops with the other banks....

The Bank of England know that Northern Rock are stable and solvent,otherwise they wouldn`t have agreed in principle to the cashflow loan,regardless of the worry about mortgage market destabilisation.....there is basically nothing financially wrong and no big gaping holes anywhere,just a glitch caused by a big change to a normally widely used and accepted practice of inter bank borrowing...

Nick D

Have you already got a broker?

MAD EVO 4

nope but now i understand how it works, ive been wanting to do this for a long time now, ill get some info sent to me first and do some reading

Nick D

You should i've done quite well over the years with guidance from my Dad. One thing to mention is that you really need to get a decent amount of money in to see any real return.

snedboy

Would you risk investing 35k into it?

Dan

This would be good for me for a relatively quick return then!

How do I go about it, any help for where to go and how to go about it mate?

Thanks, i'll get you a drink some day Rob! lol

The DIVA

iTrader: (3)

Depends if thats all your investment fund or just a portion.......I personally would never invest everything into one area leaving yourself totally exposed in a crash situation...

Remember the magic words "Investments can go down as well as up"..

Nick D

Probably not to be honest, the thing is the assets will not be liquid assets. Bearing in mind the current liquidity crisis and idiots queuing up to withdraw all their cash from NR its possible they could run out of cash and go bust.

You could make good money, or you could lose a lot. Their share price was about £11 a year or so ago, now it is £5!!!

I would not personally like to advise someone of such an investment though.

I have made an investment but I know its a gamble, all depends on your circumstances.

The DIVA

iTrader: (3)

Any of this advice is my own personal opinion by the way,i don`t pretend in any way shape or form to be a financial expert and as i have stated before,investments can go down just as quick as they go up....

If anyone is thinking of investing in anything there is plenty of proffessional financial advice available in the marketplace.....

Rodge.

Might be a sound investment, however that drop today doesn't really tell the whole story, they have been dropping since March when they were over £12 a share!

DYOR

Nick D

Such as an Advisory broker!

snedboy

Oops just ignore my PM then lol

RichardPON

Absolutely....... and if you're thinking of investing 35k on the advice of some bloke you've never met on a car forum.........

fordsportjay

iTrader: (6)

especially a scouser!

Shings

Totally.. I understand.. but its worth a punt with a few £k.. I wouldn't like to loose it but can stand on for it if needs be.

The DIVA

iTrader: (3)

Valid point....






























































You Coont....

Staffi

iTrader: (1)

You might be able to get a cossie quicker than you think the Jake..

Nick D

Be a while, were being effected by the american market and there previous lending habbits!

Thats if everyone doesnt panic and pull out!

Nick D

As for people that have a loan with them, Northern Rock's Loan Book would be bought out / transfered so not alot would change.

DaveZS

http://shares.telegraph.co.uk/telegr...y&username=&ac

-31.73%

Nick D

Tell me about it!

Rodge.

Hope you didn't buy any last week - down another 40% today - nearly at £2.50 a share!

Shings

It aint happening untill I get another job so I dont have to have a modern car for the company car allowance scheme.

I have been watching them this morning- just called in a few debts... so maybe later in the week...........

COMEDY DAN

Northern rock was funded by US banks initially.

The US banks have pulled a lot of money meaning things are tight at the moment.

This problem will be very shortlived.

There are already companies bidding to buy large stakes in the company.