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Ash4781

Northern Rock Share Price Falls 9.5%

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Yes. In a fairly big audacious way right up until very recently.

In fact I have this wonderful mental image of a big back-slapping party in full swing that has suddenly fallen silent because The Terminator just burst in through a drywall.

I think if Northern Rock were a 'subprime lender' they would be in trouble - lucky they are only a 'self cert lender'

As long as people don't realise we and the Americans speak a slight different variation of the English language - things will be OK

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My reading of NRK is that their mortgage business model is very dependant on high throughput, securitisation, narrow margins but low costs and a fairly creative approach to their mortgage lending. This has worked well in a booming market but I feel it will work (relative to the competition) rather less well in a downturn.

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My reading of NRK is that their mortgage business model is very dependant on high throughput, securitisation, narrow margins but low costs and a fairly creative approach to their mortgage lending. This has worked well in a booming market but I feel it will work (relative to the competition) rather less well in a downturn.

I think securitisation is going to be a problem in the near future. Given that many city institutions seem to be trying to find ways to pull already agreed securisation deals getting new ones is going to be hard work.

As an aside self Cert in the USA is call Alt-A and that has recently started going down the sub-prime route (albeit with a 6 month gap). Granted most UK mortgages haven't been as insane as the US equivalents but most pension funds don't know, care or understand the difference.

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I think if Northern Rock were a 'subprime lender' they would be in trouble - lucky they are only a 'self cert lender'

As long as people don't realise we and the Americans speak a slight different variation of the English language - things will be OK

....is 'self cert' not similar to the US's 'Alt A'.....?

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They also have (had?) a very nice FTB mortgage where you get 95% LTV plus a 25% LTV personal loan which you can use as a deposit, pay for transaction costs and buy a sofa. They even gave it a snappy name which I have forgotten.

That means they've leant 120% of the value of the property to quite a lot of gullible young adults.

And when the HPI pass-the-parcel-ticking-bomb stops ticking, and prices start to fall, their customer are going to end up owing a lot more than 120% of the value of the property.

Who'd invest in that business now.

Share price fall to be expected, frankly.

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Yes. In a fairly big audacious way right up until very recently.

In fact I have this wonderful mental image of a big back-slapping party in full swing that has suddenly fallen silent because The Terminator just burst in through a drywall.

Realist Bear?

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They also have (had?) a very nice FTB mortgage where you get 95% LTV plus a 25% LTV personal loan which you can use as a deposit, pay for transaction costs and buy a sofa. They even gave it a snappy name which I have forgotten.

That means they've leant 120% of the value of the property to quite a lot of gullible young adults.

And when the HPI pass-the-parcel-ticking-bomb stops ticking, and prices start to fall, their customer are going to end up owing a lot more than 120% of the value of the property.

Who'd invest in that business now.

Share price fall to be expected, frankly.

I've just remembered. They called it 'Together'.

A mortgage called 'Together'?! [sfx] figures down back of throat sort of sound [/sfx]

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:lol::lol: Great mental image...big busting white bear with his red specs on and with 2 Desert Eagle .50s quoting. "Time for great Crash 2...Baby"!!

Or better yet, he goes up to a young FTB couple who, pen in hand, are about to sign a contract:

"Komm mit me if you vant to live"

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:lol::lol: Great mental image...big busting white bear with his red specs on and with 2 Desert Eagle .50s quoting. "Time for great Crash 2...Baby"!!

Speaking of mental images....

Where has RB been hiding today?

I can almost imagine him still in front of the TV where he has been staring at the now-empty screen since the lunchtime news, catatonic, with his butty still in his hands murmuring over and over again...

"it happened... Oh my God it really happened..."

Even now D23 will be rolling his eyeballs and thinking "Oh My God I'm never going to hear the last of this..."

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Speaking of mental images....

Where has RB been hiding today?

I can almost imagine him still in front of the TV where he has been staring at the now-empty screen since the lunchtime news, catatonic, with his butty still in his hands murmuring over and over again...

"it happened... Oh my God it really happened..."

Even now D23 will be rolling his eyeballs and thinking "Oh My God I'm never going to hear the last of this..."

will D23 finally go bear? (and maybe STF will turn back again) <_<

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will D23 finally go bear? (and maybe STF will turn back again) <_<

D23 might. He strikes me as willing to debate and listen. I think he is secure enough and mature enough to modify his position based on new information if logic leads him that way.

STF. Well. Who knows. It wouldn't surprise me if he turned up claiming to be Jesus Christ.

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Guest Winnie
D23 might. He strikes me as willing to debate and listen. I think he is secure enough and mature enough to modify his position based on new information if logic leads him that way.

STF. Well. Who knows. It wouldn't surprise me if he turned up claiming to be Jesus Christ.

d23 is someone who stores up stuff to throw back at you months later. Very wierd and slightly pathological IMHO. He is a quite clever, full time troll hired by an EA or BS to keep undermining the site. He will not switch.

STF....well.....love your idea! I think he may convert back just for the hell of it! :lol:

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will D23 finally go bear? (and maybe STF will turn back again) <_<

d23 thinks Great Crash 2 is somewhere off in the future and there is no evidence of any real trouble around today. IMO, it does not get any plainer than it has been this past week. What with the LR Index showing red for half the regions in the UK and even Halifax reporting negative quarterly figures for some areas............ MY bet is that d23 will disappear before he has to admit the crash is underway.

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:lol::lol: Great mental image...big busting white bear with his red specs on and with 2 Desert Eagle .50s quoting. "Time for great Crash 2...Baby"!!

It reminds me of the monkey called angus, who won the mayoral elections in Hartlepool.

It would be cool if RealistBear got invited to a debate on tv like FP does, but RealistBear went dressed as the white bear with red specs.

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It reminds me of the monkey called angus, who won the mayoral elections in Hartlepool.

It would be cool if RealistBear got invited to a debate on tv like FP does, but RealistBear went dressed as the white bear with red specs.

Oh yes. I'm in for a tenner.

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Speaking of mental images....

Where has RB been hiding today?

I can almost imagine him still in front of the TV where he has been staring at the now-empty screen since the lunchtime news, catatonic, with his butty still in his hands murmuring over and over again...

"it happened... Oh my God it really happened..."

Even now D23 will be rolling his eyeballs and thinking "Oh My God I'm never going to hear the last of this..."

d23 is going to disappear into the mists....as he was destined to do.

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