Wednesday, Jun 27, 2007
Northern Rock struggling as rate hikes bite them
BBC News: Profit outlook hits Northern Rock
Obviously some effect from recent hikes being felt by high street lenders. Whether or not this has any material impact remains to be seen.
Posted by stoatgobbler @ 08:52 AM (169 views) Add Comment
5 Comments
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1. confused76 said...
Northern rock has lost 12% over the past month until yesterday (this is in line with all other UK mortgage lenders)
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23193/one_month.stm
and lost 10% more today!!!
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23193/intraday.stm
VERY NICE,
"While today will be painful, we recommend investors look through the near-term interest rate strain"
Keefe, Bruyette & Woods
i am sure investors are seeing through and very well... !!
2. confused76 said...
"Despite the problems, many analysts said that current situation would be short-lived and would ease as borrowers came off fixed-rate deals and had to take out loans at higher rates."
I predict there will be blood on the streets this fall,
either consumers default, or banks will see their margins squeezed.
in any case it will be a most interesting season
3. fahrenheit451 said...
Don't Northern Rock specialise in very High LTV mortgages ...
Looks like they will be getting more business from the Sub-Prime sector ...
And then the crash in the USA will glide swiftly across the Ocean ...
As the base rate rises join with the fixed rate deals to drive the "Northern" onto the "Rocks" ...
4. japanese uncle said...
Good piece of information!
5. japanese uncle said...
Is legal & General also badly exposed, I wonder?