Oh dear™ oh dear™oh dear™

[Troll]

Northern Rock asks for Bank help

One of the UK's largest mortgage lenders, the Northern Rock, is applying to the Bank of England for emergency financial support, the BBC has learned.

The bank has struggled to raise money to finance its lending ever since money markets seized up over the summer.

The decision for the Bank of England to become the "lender of last resort" comes after consultation with the Treasury and the Financial Services Authority. However the disclosure is expected to rock financial markets, Mr Peston said.

[NoddY]

This is certainly worthy of an Oh Dear™.

So Northern Rock can't borrow because the other moneylenders think it won't pay them back. Specialising in self-certs and buy-to-lie mortgages, one suspects even Northern Rock thinks it's customers aren't good for their debts either.

"Following the widespread losses made by investors in loans to US homebuyers with poor credit history, the so-called sub-prime loans, investors have become wary of buying all mortgage debt, including Northern Rock's."

So maybe that studio flat above the kebab house in Peckham isn't worth £250,000.00 after all.

[chubba]

18% of mortgages or something this year through them, 14% in the second half of last year according to the beeb

That and the Rightmove report pickle posted (http://forums.contractoruk.com/general/20959-time.html) looks like a nice slow down. Slow down leads to loss of confidence and the crash will be upon us! Commence the great wailing and gnashing of teeth, doom may be upon us...

[Sockpuppet]

There was no reason for people with Northern Rock savings accounts to panic, he added.

Because if they all moved their savings they really would be fooked.

The bank has struggled to raise money to finance its lending ever since money markets seized up over the summer.

Surely lending money that you don't have is just as bad as borrowing money that you cant afford to pay back.

[Troll]

Because if they all moved their savings they really would be fooked..

Tee Hee... some guy on the radio this morning, moaning he couldn't access his t'internet account at NR to move cash out... all the hallmarks of a crash...

[Lucy]

Peckham - blek!

[Sysman]

Surely lending money that you don't have is just as bad as borrowing money that you cant afford to pay back.

Precisely! Unfortunately, the gits wot did it probably put large wads of dosh in their own pockets, and the legal system probably won't punish them adequately, if at all.

[scooterscot]

Tee Hee... some guy on the radio this morning, moaning he couldn't access his t'internet account at NR to move cash out... all the hallmarks of a crash...

ReAlLy.... woa, that would make me nervous I'd be exchanging my account for a spot under the pillow about now.

[GreenerGrass]

Because if they all moved their savings they really would be fooked.

Surely lending money that you don't have is just as bad as borrowing money that you cant afford to pay back.

This is how banks work. The Northern Rock is not a traditional building society that can only loan out its own cash. It trades on the money markets.
The problem is the money markets don't want to trade with it.

[Troll]

Just bear the compensation limits in mind & spread your cash across several institutions

Deposits: £31,700 per person.

100% of the first £2,000 and 90% of the next £33,000.

Investments: £48,000 per person.

100% of the first £30,000 and 90% of the next £20,000.