Northern Rock

[Charlie The Tramp Returns]

Northern Rock to offer 90% mortgages. Return to riskier lending three years after bank’s collapse.

Financial Times 28-2-2011

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[Si1]

It has also been given permission to buy back some of the loans it used to own, which were hived off into a so-called bad bank last year. This portfolio of legacy loans has returned to profit because of relatively low default levels.

just in time for the double dip

genius

[thecrashingisles]

Northern Rock is expected to limit the amount of funds it makes available for 90 per cent deals. Rates could start at just below 6 per cent.

Just 5.5% above the base rate then...

[Sledgehead]

Just 5.5% above the base rate then...

and a 10% price fall away from neg-eq: yay!

[TeddyBear]

Is this why they've been spending money to advertise as "a great place for savings" on my local, commercial radio station? Bump up the reserves ready for a bit more irresponsible lending?

[trekking]

Northern Rock to offer 90% mortgages. Return to riskier lending three years after bank’s collapse.

Financial Times 28-2-2011

You have to register for free to read the article.

Not if you enter "Northern Rock to offer 90% mortgages" into google.

[200p]

Won't he just go away and die! How long does it take to boil that fracking frog!

More northern rock in pictures on the old thread http://www.housepricecrash.co.uk/forum/index.php?showtopic=55900&st=0

[Unsafe As Houses]

and a 10% price fall away from neg-eq: yay!

The people at Northern Rock clearly think otherwise.

Edit:

On the other hand, it'll be interesting to see how many 10% LTV mortgages they approve - maybe it's just a token effort to appease their new owners...

Edited February 28, 2011 by Unsafe As Houses

[Guest sillybear2]

Nice to see short-term profit seeking is back again after three short years, what could go wrong?

Edited February 28, 2011 by sillybear2

[eric pebble]

Question: Why isn't that dick Applegit - the guy in charge of NR until its fall - in prison? :angry: :angry: :angry:

Edited February 28, 2011 by eric pebble

[Bloo Loo]

I just filled in the "How much can I borrow" form for Mrs Loo

the mortgage I indicated was 29% LTV.

A repayment loan would have cost £380 per month over 8 years....well affordable with her single income.

Sadly, they could only lend her 2.4 times her gross income and the app failed and needed a written application to the underwriters.

clearly, paying off this soon is not worth the time and bother.

[CHF]

Question: Why isn't that dick Applegit - the guy in charge of NR until its fall - in prison? :angry: :angry: :angry:

And why hasnt the investigation even began into the number of shares him and david baker sold about 3-6 months before NR went pop?

Edited February 28, 2011 by CHF

[MrFlibble]

Question: Why isn't that dick Applegit - the guy in charge of NR until its fall - in prison? :angry: :angry: :angry:

Same can be asked about a lot of these people. Still when you are paid vast sums of money to play double-or-quits knowing full well Johnny Taxpayer will ride to the rescue should it all go wrong then why worry? The icing on the cake is the Government trying to prop up the ponzi it so it cannot go wrong.

The whole house of cards is going to come crashing down before much longer.

[Guest sillybear2]

All the publicly owned banks should either be remutualised or held in perpetuity in a public trust, returning them to the stock market is the worst possible outcome. The grasping short-term interests of investors and the long-term public interest in a stable banking sector are totally misaligned, and no amount of regulation will never solve that. Not to mention the fact any profit from credit creation (money 'printing') should flow to the public treasury not private interests, remember that usury is nothing but a private tax system.

The financial sector exists to extract wealth from the wider economy, like a leech. At least when the government owns a stake the cash flow becomes a bit more circular, and capital can be directed into much needed infrastructure and socially useful activites, instead of blowing ponzi style asset bubbles.

[TheCountOfNowhere]

If they aren't careful they will start another run on the NR with headlines like that

Seriously though, I've taken the last of my money out of the NR today. If these idiots are hell bent of destroying the banking sector again then they can do it without my support.

[Ash4781]

They are a mortgage bank. The only way out is to lend mortgages and the higher risk end will likely be more profitable. 6% is that variable rate?

[Realistbear]

That old Peter, Paul and Mavis song comes to mind:

When will they ever learn........................where have all the ftbs gone, long time passing......................

The government are truly desperate to keep HPI going as the engine of this pathetic nations growth. Far better, IMO, to allow the market to crash and die. Then, they can rebuild the economy on something productive. If they don't learn the lesson it will be the same old boom and bust forever. They key is in destroying the power of the banksters.

[moonriver]

http://www.guardian.co.uk/business/2011/feb/28/northern-rock-offer-90-per-cent-mortgages

Northern Rock to offer 90% mortgages

Northern Rock to offer mortgage deals to customers with just a 10% deposit

Nationalised lender Northern Rock is poised to launch mortgages that require just a 10% deposit – or 90% loan-to-value – as lenders become more willing to take on extra risk.

In January the number of deals available to people who needed such mortgages – which were common before the financial crisis – jumped by 26%.

Northern Rock has been considering the move since 2009, when it was allowed to resume lending following its nationalisation in February 2008, and will make limited funds available for such deals. Even with lenders resuming these types of loans, the number of products is down 75% from pre-crisis levels.

The bank, which could be privatised by the end of the year, could announce the new mortgage range on Monday.

Looks like January truly bought back the days of irresponsible lending, if these sort of deals leapt by 26%.

[long time lurking]

They are a mortgage bank. The only way out is to lend mortgages and the higher risk end will likely be more profitable. 6% is that variable rate?

It looks like svr/boe tracker but it also looks like all the banks are doing a bit of flag waving to keep Georgie boy happy ,as from what I have seen they are only happy to lend three times a single wage @90% ltv so the number of mortgages issued will probably be small

[Bloo Loo]

http://www.guardian....-cent-mortgages

Looks like January truly bought back the days of irresponsible lending, if these sort of deals leapt by 26%.

yet approvals are in the Doldrums.

The bankers pushing on a string and lipservice to the Government....theyve had their bonuses, time to say thank you and goodnight

[MrFlibble]

The government are truly desperate to keep HPI going as the engine of this pathetic nations growth. Far better, IMO, to allow the market to crash and die. Then, they can rebuild the economy on something productive. If they don't learn the lesson it will be the same old boom and bust forever. They key is in destroying the power of the banksters.

Totally agree, the only way to fix this mess is to allow a proper crash to happen, learn from the mistakes and then rebuild something that doesn't suffer from the same old problems.

They are not interested though as they are too busy making sure they and their banker chums are looked after.

Still lets see how the second bust plays out...

[Bloo Loo]

I've been waiting for that phrase to hit the media. Wonder when they realise how Japanese we are. Well clearly the authorities do because they've done everything possible to try and avoid a deflationary collapse. We're heading for a volaflationary collapse instead where people won't know which way to turn.

I've been waiting for that phrase to hit the media.

Waiting for the rubber band pulling on a brick effect in respect of house prices.

[Laughing Gnome]

Well didn't Grany Shapps just have a conference over what can be done for first time buyers?

And oh look, It's fixed!

A desperate attempt by the major shareholder to prop the whole thing up, and I think it will probably succeed for a while.

It won't take much in such a slow market.

Utterly depressing.

[Milton]

Northern Rock to offer 90% mortgages. Return to riskier lending three years after bank's collapse.

The clinical definition of insanity is doing the same thing over and over again, yet each time expecting different results.

We are ruled by bagmen MP's who answer to clinically insane banksters, who continue to rob and rape us.

Edited February 28, 2011 by Dan1

[Guest sillybear2]

The clinical definition of insanity is doing the same thing over and over again, yet each time expecting different results.

We are ruled by bagmen MP's who answer to clinically insane banksters, who continue to rob and rape us.

The next worst thing is allowing it to happen.

Edited February 28, 2011 by sillybear2