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Northern Rock

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http://www.northernrock.co.uk/html/investo...ockex310306.asp

Reflecting our view of the economy and our expectation for broadly flat house prices, we will continue the policy of 2005 in seeking quicker crystallisation on defaulting loans – secured and unsecured – where they are higher risk loans. Combined with the introduction of Basle II-style impairment models, this will mean a shift in the relationship between provisions and write-offs, a trend already evidenced in 2005’s figure.

This is quite a clear statement. It confirms what we are seeing in Leeds County Court that mortgage repossessions are increasing considerably from previous months. The court is adding extra re-possession hearing days to cope with the work load.

Pity they can't spell Basel properly, though.

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Guest X-QUORK

"Pity they can't spell Basel properly, though."

Basel being in Switzerland and all, they've used the French spelling I believe.

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"Pity they can't spell Basel properly, though."

nah... probably cos they're NORTHERN Rock.

Many people in Oop North (including I'm Oop North) still think the world is flat and that if they drive past Sheffield they'll fall off :P So I suppose they won't have heard of Basel.

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"Pity they can't spell Basel properly, though."

nah... probably cos they're NORTHERN Rock.

Many people in Oop North (including I'm Oop North) still think the world is flat and that if they drive past Sheffield they'll fall off :P So I suppose they won't have heard of Basel.

Isn't Basel in East Angular somewhere?

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Its good to spark an intellectual discussion on Basel.....

Seriously though, "quicker crystallisation on defaulting loans" is interesting. Unsecured loans are crystallised through debt collection agencies and thereafter county court debt action. Little or no chance of getting their money back in quite a lot of cases. Secured loans are crystallised through repossession and sale of the property. If they are now saying they want quicker crystallisation of secured debt then they are worried about equity levels in properties. One legal argument for suspending possession orders in relation to owner ocupation in recent years has been that owner equity levels in properties are so high that the risk to the lenders interest is minimal - in some cases even if borrowers failed to pay their mortgage subscription for a year - ie £500 x 12 = £6000 that would still be small when their house has doubled in value since it was purchased a couple of years ago. This is no longer the case. Judges were therefore less likely to make outright possession orders and allow defaulting borrowers time to get another job; get their finances in order or whatever. This is no longer the case for many...anyone who bought in the past 18 months will see virtually no equity in their property...any default on payment will result in a much greater risk to the lender and therefore the need for lenders to cristallise the debt quickly. This is why we are now starting to see greater numbers of recent purchasers in court being repossessed. Very sad.

This is a simple point but it needs stating. We will now start to see a much quicker through put of properties being repossessed as lenders attempt to stem the tide.

Deep joy.

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Guest Charlie The Tramp

This is why we are now starting to see greater numbers of recent purchasers in court being repossessed. Very sad.

Following the daily list of petitions at the central bankruptcy court I fear the stats for Q1 for repossessions and personal bankruptcies will be shocking and headline news in all the newpapers. Norwich has produced very bad stats, the majority of their repossessions being FTBs.

Soaring house prices in Norwich are stopping first-time buyers from getting on to the property ladder, while hundreds of those who do are getting their homes repossessed because they cannot afford the mortgage repayments.

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I live near Stratford-upon-Avon and the smallish local paper has two employment ads for people to come and work in debt collection. A "fast growing field" with ample opportunities to make a large salary.

The vultures are circling. :unsure:

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I live near Stratford-upon-Avon and the smallish local paper has two employment ads for people to come and work in debt collection. A "fast growing field" with ample opportunities to make a large salary.

The vultures are circling. :unsure:

Debt Matters up +7% today - gutted I bailed out a few weeks ago.

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i remember reading somewhere (sorry no link as this was a few months ago) that Northern Rock, being a plc and all that are totally different to the "nice" building society of yesteryear. ..

i believe that their business model is to start reposession proceedings as soon as the second payment on a mortgage is late. (i.e. the mortgage is two months in arrears) :(

can anyone confirm/deny this, please?

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Debt Matters up +7% today - gutted I bailed out a few weeks ago.

dont mention them :lol: I bought into them months ago then sold, i made a few hundred quid, if i woulda held on for 3 months (ish) i would of been 10K better off, proper f*ck up that turned out to be :lol:

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"i remember reading somewhere (sorry no link as this was a few months ago) that Northern Rock, being a plc and all that are totally different to the "nice" building society of yesteryear. .."

I don't think there are any'nice' building socs left these day.

The morgage providers of today are a very different beast from those of 20 years ago.

In onw word, they are 'efficient', which is why they are able to offer cheaper loans.

If you pay your morgage on time then you will benefit from that efficiency.

If you miss a payment then it is a different stroy.

You become a higher risk customer. Higher risk means higher IRs.

Northern Rock is one of the most 'efficent' lenders out there. They are keen on moving deliquent laons

up from morgage-like rates to unsecured rates. They are pretty quick on repos too.

Nothings free.

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"i remember reading somewhere (sorry no link as this was a few months ago) that Northern Rock, being a plc and all that are totally different to the "nice" building society of yesteryear. .."

Think most of them are demutualised now and thus run for the benefit of shareholders rather than members (i.e. savers) which used to be the case. I'm not well versed in the history of building societies but I think their original objective was to fulfill a social need, not make shed loads of money.

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  • 302 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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