Northern Rock

[CathH]

Just heard on the news that Northern Rock have asked the Bank of England for "emergency funds" and are telling people not to panic. I have mortgage with NR what will happen if they go bust?

Thanks
CathH

[Neilzulu1]

Get down to Asda and get a big cardboard box.

[CathH]

I might just have to do that !!

Seriously tho, I have never heard of this before and wonder if another bank would step in or take over the mortgages. It said NR were the largest mortgage bank - so I am not alone!

[Beads]

Hiya CathH...ooh me too - lets hope they wipe our mortgages. He hee. I haven't read the report but....:

I would imagine that if they did have real troubles, then they may be taken over and the mortgage for the consumer would stay the same under the new bank (they may even keep their company name still) - I think the most the consumer may see would be a change in the name on their mortgage statement. Perhaps when their fixed rate period was up then they may be offered different things from what they may have been offered. Personally I am not worried.

For all we know they could well be planning to take over another company hence the emergencies funds for a big spend which will make their firm bigger. You don't know - half the time these things are all speculation and nothing happens!

[Neilzulu1]

Your mortgage will be safe as someone else will gladly take up your debt to NR.

Ring them up, if you can not get an answer consult citiznes advice.

Then get a box...lol.

[CathH]

Thanks Beads - that all makes sense, hopefully it will be as you say.

[Beads]

Hi CathH
Pleasure. I can assure you as a consumer at the most it may be a bit of an inconvenience if you don't like the company that takes them over - this is even if it was to get to that - if anything it's the people that work there during these times that would be the unsettled ones due to job security. We'd have nothing to worry about as the consumers - they want to keep us happy!

:-)

[WaldoMcFroog]

They're not going bust - they're in profit, but finding it hard to raise the money to finance loans to lenders because the market is jittery after the sub-prime loans sector has been unstable.

It's not great, but your money and mortgage are fine. They're just changing where they get their money from for a little while.

[mushroom25]

just received an e-mail from our company payroll dept advising that "there is a problem crediting salaries to Alliance & Leicester accounts". On calling A+L there is a recorded message telling you the system is unavailable, and the internet banking service is off-line. In view of the NR situation, all of a sudden I'm getting very twitchy.......

[Mel_C]

I also have a mortgage with NR and was abit worried when it was announced on the news (all this emergency measures talk, bank of england involved etc etc), but my other half pointed out that in the unlikely situation NR went bust then another bank would happily take on mortgages as it means more money for them. Personally I think NR will be ok...