Northern Rock

http://news.bbc.co.uk/

I hope there's not a panic....it would be devastating

IIRC Barclays had the same issue earlier in the month. (inc. the woolage)

edit linky here

similar yeah. Barclays are very liquid though, they have a huge amount of money in many many different places. Northern Rock however are almost entirely reliant on mortgages and are very vulnerable to the capital markets. I think it'll be down to the media tomorrow how things go

Cant remember where i saw it, but its all to do with them Americans, lots of reposesions market slumps etc, banks are buckling up for a rough ride all over the world.

All mortgages and loans will get more expensive, on top of any BOE rate rises

my mums already started shifting her properties as mortgages were becoming ridiculous. Apparently they lent money to high risk americans and now they won't be able to get it back.

(From the link above) : A money boffin said.....

"We don't know where the poison went from all these bad loans and you have to look at all these bad loans as a bit like a blancmange that's been hit very heavily by a spade and it's gone everywhere.




Riiiiiiiiiight!



I'm so glad my N.R. car loan ends next month.

[tigersaw]

Been reading up on this tonight. Seems only the HSBC is capeable of funding all its loans from deposits, the rest of them shift money between themselves all the time.

So how will this affect the interest rate? Should I get a fixed rate even though it's relatively high or wait? I was going to move early next year.

The banks are all struggling - and that cost will be passed to us


maybe they should ease up on the £50m bonuses!

Originally Posted by teriyakimonkey

So how will this affect the interest rate? Should I get a fixed rate even though it's relatively high or wait? I was going to move early next year.

If your planning to move then move, if you keep waiting for the right time, it'll never happen.

rates go down, house prices will rise, then you'll wait for that to come down. lol

in reality, it all stays at about the same, take with one hand give back with another.

I stick with trackers mainly because i know the banks will usually make more from you on a fixed. tho that hasn't quite worked this year