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Rbs Margin Calls - Anecdotal

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I was having a chat to a colleague today and they said that their partner had got a personal loan and had a call from their loan provider saying that RBS where calling in loans (I think the loan was via a 3rd party provider funded by RBS) and could they pay up. They couldn't pay off the loan but did agree to speed up repayments.

I didn't inquire too much into this but thought I'd see if anyone else had heard anything similar happening.

Are RBS busy making margin calls? Short of cash again?

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RBS seem to be having a bit of trouble 'Locking in to the recovereh'.

RbsOMG.gif

National Australia Bank abandons bid for RBS branches

National Australia Bank has become the latest suitor to drop out of the race to buy 318 branches from the Royal Bank of Scotland, leaving Spain's Santander as the clear frontrunner.
Early last month Sir Richard Branson's Virgin Money pulled out of the auction after its offer was rejected by UBS, which is advising RBS, as too low.

I think they need money, not loans.

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Now that is very interesting! Read this yesterday on MSE:

http://forums.moneysavingexpert.com/showthread.php?t=2521185

HELP!! I have a mortgage and an overdraft with the RBS. My mortgage is not in arrears and I pay it every month. Out of the blue I have just received a letter from the RBS - actually two letters in the same envelope giving me 2 weeks to pay off my overdraft and my mortgage. If I do not pay off my mortgage in less than 2 weeks they will repossess me and another list of threats. They have not followed any pre-action protocol. I think they are trying to bully me into paying off my overdraft with the threat of making me homeless. Can banks recall your mortgage on a whim if your payments are up to date? Thanks in advance for some sound advice

coincidence? Or os RBS in some deep sh1t?

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Now that is very interesting! Read this yesterday on MSE:

http://forums.moneys...d.php?t=2521185

coincidence? Or os RBS in some deep sh1t?

that poster has a 10 year old IO mortgage and an overdraft. Says they are both on notice to be repaid within weeks.

the IO has a few years to go. It appears there is no repayment vehicle and that the poster is behind on other debts.

Bearing in mind the mortgage was 10 years ago, I would be surprised if there wasnt a condition for a repayment vehicle to be in place.

this breach would be serious enough to start the possession process...whether a court would finish it off is a mure point, but in any case, the poster has 5 years left....then it needs to be repaid regardless.

this is a looming problem with IOs...not now in particular, but 20 years from now it starts....the trigger for the next and final collapse?

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credit rating great up until a year ago then seriously downhill

...

they said my account had been taken over by the "risk management team"

...

He basically tried to bully / threaten me into borrowing the money to pay off the overdraft from elsewhere or they would sell the flat to pay for it since there is equity in it.

They're coming after your equity! (Before it shrinks) The market is heading dddouun!

Edited by Money Spinner

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credit rating great up until a year ago then seriously downhill

...

they said my account had been taken over by the "risk management team"

...

He basically tried to bully / threaten me into borrowing the money to pay off the overdraft from elsewhere or they would sell the flat to pay for it since there is equity in it.

They're coming after your equity! (Before it shrinks) The market is heading dddouun!

Maybe they know that in 5 years when she has to sell the house to repay the debt that they will not get their money back?

Although if she bought 10years ago there should some serious equity in it.

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It's the liquidity squeeze. I've been contacted by various banks I have short-term (maturing) savings products with, to ask if I'd like to take out repeat offers. They're deperate for cash.

There's been plenty of predicitions of a squeeze in 2011 - the US has its mortgage resets and the UK needs to find £700bn in external funding for mortgages - where's that coming from?

I expect a rise in interest rates in 2011 just on the technicality of needing to attract cash...

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Maybe they know that in 5 years when she has to sell the house to repay the debt that they will not get their money back?

Although if she bought 10years ago there should some serious equity in it.

apart from the overdraft..the credit cards and the other arrangements the poster has come to....

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It's the liquidity squeeze.

I expect a rise in interest rates in 2011 just on the technicality of needing to attract cash...

surely this will make banks push up their mortgage rates regardless of the base rate. I'd expect SVRs to be going through the roof. Lloyds have already started the fun by removing their cap of 2% above base rate for SVRs. Also the phasing out of IO and gaurantor mortgages. Nationwide raising their rates and fees too. They are preparing for the 'liquidity squeeze'

Can't see how it will effect the base rate though?

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surely this will make banks push up their mortgage rates regardless of the base rate. I'd expect SVRs to be going through the roof. Lloyds have already started the fun by removing their cap of 2% above base rate for SVRs. Also the phasing out of IO and gaurantor mortgages. Nationwide raising their rates and fees too. They are preparing for the 'liquidity squeeze'

Can't see how it will effect the base rate though?

No - you're right. I meant a rise in average savings rate, which follows from rises in SVRs. Base rates might stay low for a while longer...

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I was having a chat to a colleague today and they said that their partner had got a personal loan and had a call from their loan provider saying that RBS where calling in loans (I think the loan was via a 3rd party provider funded by RBS) and could they pay up. They couldn't pay off the loan but did agree to speed up repayments.

I didn't inquire too much into this but thought I'd see if anyone else had heard anything similar happening.

Are RBS busy making margin calls? Short of cash again?

I can't see how they can make margin calls on personal loans or mortgages if the terms and conditions of the loans have not been breached. Some BTL contracts seem to have clauses which need a certain level of LTV to be maintained and overdrafts can be called in at any time though.

I have one friend where the mortgage provider offered to remove their "additional borrowing option" but he just said no, even though it has never been used.

VMR.

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Maybe they know that in 5 years when she has to sell the house to repay the debt that they will not get their money back?

Although if she bought 10years ago there should some serious equity in it.

Unless, of course, she has serially remortgaged without extending the term, and clauses about overdrafts or all additional borrowing got in without being noticed.

But there has to be more to it than what we've seen, unless it is just a bank error.

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Mate of mine, £140k loan from RBS. "Bought" a flat in 2007 north London.

No repayment plan in place, liar loan, has no plans or intention to pay RBS back.

If, as has been already mentioned, they want the liquidity before implosion, he could be getting a nasty letter soon methinks. :ph34r:

The place underneath his has just dropped £15K in the last month, the place opposite has been sold and re-available twice in 3 months and he lives opposite a half built development that ran out of cash 2 years ago.

Theres gonna be a storm.

Get yer cash safe and available, there will be some unbelievable bargains soon.

40% down from here i reckon.

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During the last recession (around 1990) banks called in business loans - I know of firms that went bust as a result.

Edited by blankster

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no she says it's unsecured.

no such thing when you have an asset worth selling.

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RBS won't have any business customers in 2- 4 years...

The amount of SME customers RBS is losing is frightening to behold.... anyone with a half decent business is looking for an exit from RBS. The manner in which RBS management have sought to tackle the mess left by Freddie is bizarre and has simply succeeded in driving out any business customer with the capacity to generate income for RBS.

RBS are not open for business, will not work with business no matter how good the proposal or limited the risk. The pendulum has swung completely the other way... from standing on the roof showering money to the masses RBS are now cowering under the desk refusing to lend anything to anyone.... this approach is f*cking off SO many businesses that RBS are doomed.... by the time they wake up to the fact that business lending will provide the income they need to rebuild the bank it will be too late... they'll have no business customers left apart from the skint BTLer's an property companies which got them into the mess in the first place.

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RBS won't have any business customers in 2- 4 years...

The amount of SME customers RBS is losing is frightening to behold.... anyone with a half decent business is looking for an exit from RBS. The manner in which RBS management have sought to tackle the mess left by Freddie is bizarre and has simply succeeded in driving out any business customer with the capacity to generate income for RBS.

RBS are not open for business, will not work with business no matter how good the proposal or limited the risk. The pendulum has swung completely the other way... from standing on the roof showering money to the masses RBS are now cowering under the desk refusing to lend anything to anyone.... this approach is f*cking off SO many businesses that RBS are doomed.... by the time they wake up to the fact that business lending will provide the income they need to rebuild the bank it will be too late... they'll have no business customers left apart from the skint BTLer's an property companies which got them into the mess in the first place.

lack of money will tend to do this.

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I wonder if this could become the start or the main repossession phase. Once one group of bankers starts to do it to protect their jobs, the others won't for the market to wipe out what equity their borrowers still have.

VMR.

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exactly right,it's basic game theory(prisoner dilemma).for me this was always the issue,who would break ranks first to try and save themselves.

even with my typos and missing words, it's easy to understand :)

the main repossession phase was always going to be instigated by one of the major banks seeing the writing on the wall and trying to get their equity out first.

I think they missed the writing on the wall for the last few years. It's only when the P45-postman appears on the horizon that they act.

those most exposed will be people on hight LTV's-no matter what your salary on the whole,as if you get a 30% margin call on a 95% mortgage,you will need savings to get through(or a majorly well paid public sector job/small mrotgage ratio)

I wonder if the most exposed are the one in arrears but with equity, they effectively still have some money to go after. No idea really, just a guess.

VMR.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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