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juvenal

Darling Said Northern Rock's Mortgage Book Was Sound..

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Anyone remember Darling's denial that the Rock had any sub-prime on its books?

Yet today's NR figures blame their losses on an unusually large number of mortgage defaults.

Surely Alastair wasn't mistaken?

Edited by juvenal

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Anyone remember Darling's denial that the Rock had any sub-prime on its books?

Yet today's NR figures blame their losses on an unusually large number of mortgage defaults.

Surely Alastair wasn't mistaken?

People will be defaulting on their mortgage due to unemployment and short time working patterns. So-callled prime mortgages will soon turn sub-prime.

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There was a good article on here a few weeks ago about the difference between insolvency and illiquidity. It said that basically nearly all the banks were insolvent if one were to take a realistic value of their loan books, not what may be the current market price. However the general pubic were spun a line about the banks being illiquid, hence why tax payers money is being spent to prop up an unsustainable housing market.

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Strange bit of irony really.

Sub-prime is bad quality mortgage borrowers, they are lent money at higher rates of interest because they harbour more risk to lender.

Northern Rock did do sub-prime lending, for Lehman Bros on an agency type of basis, they received commission on evry mortgage sold.

Huh, I bet they wished they had such a link now, to off-load all the toxic crud they have created or converted from their very own prime mortgage book.

The age of mortgage conversion has arrived for NRK!

Prime to sub in one easy lesson.

Sub of the day anyone?

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Anyone remember Darling's denial that the Rock had any sub-prime on its books?

Yet today's NR figures blame their losses on an unusually large number of mortgage defaults.

Surely Alastair wasn't mistaken?

...never believe a politician especially with a legal background ...and more so if they are discussing finance.... <_<

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...never believe a politician especially with a legal background ...and more so if they are discussing finance.... <_<

There is NO subprime in the UK.

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to be fair to NRK - all the good borrowers left as they basically made it so they did nto want to stay - so the people that stayed were those that could not leave. So it's no surprise they have lots of defaults - I am just surprised it's not even more than 1 in 25 or so....

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Prime to sub in one easy lesson.

...many of them will be prime to bad and sub to bad ....thus the bad debts ....did they not also entice deposits with better than average returns ....higher the risk.. higher the return... until it goes bad....but of course the depositors were rescued... <_<

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to be fair to NRK - all the good borrowers left as they basically made it so they did nto want to stay - so the people that stayed were those that could not leave. So it's no surprise they have lots of defaults - I am just surprised it's not even more than 1 in 25 or so....

yes, they ALL left, apart from the 94% that ARENT in arrears.

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...many of them will be prime to bad and sub to bad ....thus the bad debts ....did they not also entice deposits with better than average returns ....higher the risk.. higher the return... until it goes bad....but of course the depositors were rescued... <_<

Not sure they did, I think they had headliner rates from time to time and then once they hit their tranche target, dropped hoping the saver would stick with it.

They didn't need much from retail deposits as they had securitised their loan book from early 2000 on.

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Anyone remember Gordon Brown saying he had no warnings over what was going to happen?

Politicians lie, end of story. Darling was bluffing to try and prevent collapse and aviod the govt taking over the bank.

Foolish yes but clearly understandable from a govt in denial over how serious the situation was. Why tell the true if you can bluff your way out of the mess.

No one in the wider public cares that Darling lied, most will have no recollection that the Govt said there where no issues with NR and the govt will simply blame the global economic collapse for the figures getting worse.

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yes, they ALL left, apart from the 94% that ARENT in arrears.

no, you know you are oversimplifying, much as I was. NRK had a lot of people who were or are tied in or are high LTV and so cannot leave at the moment - so they just have to pay through the nose. many of them are paying, but are not in arrears. They still can't leave though, because no-one else will take them so they are stuck paying SVR (4.79 right ?) plus etc. and it's killing them.

The pool of people for whom it becomes too much is likely to be much greater amongst those who can't move - or they would have done - to a cheaper deal elsewhere..... - hence the increased default rate.

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Darling Said Northern Rock's Mortgage Book Was Sound..
Well, he was wrong, I admit it.
Anyone remember Gordon Brown saying he had no warnings over what was going to happen?

None of the banks went round shouting from the rooftops that they might, just possibly, have wandered ever-so-slightly out fo their depth, did they?

Edited by blankster

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None of the banks went round shouting from the rooftops that they might, just possibly, have wandered ever-so-slightly out fo their depth, did they?

Of course not that would have affected the share price. The banks didn't do negativity.

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no, you know you are oversimplifying, much as I was. NRK had a lot of people who were or are tied in or are high LTV and so cannot leave at the moment - so they just have to pay through the nose. many of them are paying, but are not in arrears. They still can't leave though, because no-one else will take them so they are stuck paying SVR (4.79 right ?) plus etc. and it's killing them.

The pool of people for whom it becomes too much is likely to be much greater amongst those who can't move - or they would have done - to a cheaper deal elsewhere..... - hence the increased default rate.

what? 94% of them cant move....thats a worry.

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what? 94% of them cant move....thats a worry.

I take it you are just trying to act stupid, because you are clearly not.

many borrowers don't have large mortgages either - so moving at all is expensive because of the fees involved - plus the inertia - many people are useless and just stick with what they have (see banks and teaser interest rates for more details).

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Liebour are better at making the stupid people think how they think:

If labour is in power and labour lie, the stupid forget about the lies, and ignore a any truth's announced by the tories. If the tories are in power, labour will lie and get away with implicating the tories in something that didn't happen and the tories struggle to defend themselves. Perhaps it is a lower class upper class thing?

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I take it you are just trying to act stupid, because you are clearly not.

many borrowers don't have large mortgages either - so moving at all is expensive because of the fees involved - plus the inertia - many people are useless and just stick with what they have (see banks and teaser interest rates for more details).

I acting stupid? thats a worry.

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