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Northern Rock Renamed Southern Turd

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Has anyone been following the share price of the UK's largest Sub Prime lender? Only today it had a haircut of over 3% and tomorrow another haircut will be in order.

Due to recent poor performance, and by popular demand, Northern Rock shall now be known as Southern Turd. It shall be known by this name until it ceases trading.

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Guest Charlie The Tramp
Has anyone been following the share price of the UK's largest Sub Prime lender? Only today it had a haircut of over 3% and tomorrow another haircut will be in order.

Due to recent poor performance, and by popular demand, Northern Rock shall now be known as Southern Turd. It shall be known by this name until it ceases trading.

Have there not been Companies who share price sank to pennies and they still carried on trading ? :unsure:

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Have there not been Companies who share price sank to pennies and they still carried on trading ? :unsure:

Yup, but they often have to go through a "rebirth" as something else, or get swallowed up etc etc

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Is it possible / likely that Northern Rock gets bought up by a larger bank or financial group?

yup the general business itself can fall to low value, at which point certain tangible assets like the expertise (I'm not saying the CEO, board etc who got them in the mess, but the middle to lower ranks,the fact that it's a company with actual high street banking and mortgage skills and assets) become of value; a big international bank MIGHT snap them up to entet eh UK market, like quite a few lenders that may see difficulties in the coming months, but are international banks actually in a position to do this now, are they not rather risk-averse instead?

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Guest Charlie The Tramp

Well not bad results for the first half of 2007. :)

Profits

Statutory profit before tax of £296.1 million up by 0.7% compared with H1 2006. Statutory profit attributable to equity shareholders of £188.2 million, up by 0.2%

Underlying profit before tax, including gains on disposals, of £346.6 million up by 26.6% compared with H1 2006. Underlying profit attributable to equity shareholders of £223.7 million, up by 28.9%

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yup the general business itself can fall to low value, at which point certain tangible assets like the expertise (I'm not saying the CEO, board etc who got them in the mess, but the middle to lower ranks,the fact that it's a company with actual high street banking and mortgage skills and assets) become of value; a big international bank MIGHT snap them up to entet eh UK market, like quite a few lenders that may see difficulties in the coming months, but are international banks actually in a position to do this now, are they not rather risk-averse instead?

Nationwide just bought the Portman Mortgage Group.

'nuff said.

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Guest Charlie The Tramp
Nationwide just bought the Portman Mortgage Group.

'nuff said.

I thought this thread referred to Northern Rock. :unsure:

Nationwide are very nice people. :)

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I thought this thread referred to Northern Rock. :unsure:

Nationwide are very nice people. :)

If that's the case why are they still lending 4.5x joint income. That gives a mortgage of 56% of take home pay. Unsustainable IMHO. First Direct lending only 2.75x.

Nationwide are living in the era of 3.5% rates still.

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Guest Charlie The Tramp
If that's the case why are they still lending 4.5x joint income. That gives a mortgage of 56% of take home pay. Unsustainable IMHO. First Direct lending only 2.75x.

Nationwide are living in the era of 3.5% rates still.

Well in the 70s with IRs hitting 15% the accepted rule was up to 3.5x single and 4 to 4.5x joint with many BSs and the majority like myself did not find it a problem. Also remember the standard rate of tax was 33%, but at least we got full tax relief on the interest paid.

Nationwide is still a BS owned by its members both Investors and Borrowers, the reason I think they are very nice people. :)

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Well in the 70s with IRs hitting 15% the accepted rule was up to 3.5x single and 4 to 4.5x joint with many BSs and the majority like myself did not find it a problem. Also remember the standard rate of tax was 33%, but at least we got full tax relief on the interest paid.

Nationwide is still a BS owned by its members both Investors and Borrowers, the reason I think they are very nice people. :)

Charlie, I don't doubt your memory (you have taken that Aricept haven't you) are you sure it wasn't 2.5x joint and 3.5x single or so. Certainly that's my memory from the 80's (no MIRAS). Try going to the BBC mortgage calculator and tapping in some numbers with the figures you mention. I don't think it will stack up but I'd love to be proved wrong.

I agree about the mutual bit however.

Kind regards

Edited by uro_who

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2.5x joint and 3.5x single or so. Certainly that's my memory from the 80's (no MIRAS).

Me too, 80s + early to mid 90s. Can't speak for the 70s.

The other thing is that inflation was higher back then, so a couple could buy a home on joint income, then after a few years of wage inflation could afford to have kids. These days, 56% of joint income is going to need a lot of years of 1.9% inflation before one can give up work, even for a while.

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Guest Charlie The Tramp
Charlie, I don't doubt your memory (you have taken that Aricept haven't you) are you sure it wasn't 2.5x joint and 3.5x single or so. Certainly that's my memory from the 80's (no MIRAS). Try going to the BBC mortgage calculator and tapping in some numbers with the figures you mention. I don't think it will stack up but I'd love to be proved wrong.

I agree about the mutual bit however.

Kind regards

uro_who in 1976 I applied for a mortgage of £12k to buy a 4 bed detached house moving up from my FTB 2 bed maisonette having lived there for 6 years. The EA who was an agent for the Woolwich said on my salary at 3.5x I could only borrow £10.5k but if my wife was employed full time he probably could stretch it to 4 to 4.5x joint salary, but lucky for me while this was being discussed I was involved in a productivity deal which pushed my wages up allowing me to borrow the £12k at 3.5x single. It was great really as my wife did not work full or even part-time during this period and was indeed a lady of leisure.

As I said this was during the mid 70s at the time of the hidden HPC of 76/77 when the HM dried up but the number of people I knew who moved up at the time was amazing when I now look back. Indeed many say on this Forum that the 70s were hell on earth, but personally they were a time of making great wealth for myself, relatives, friends, and many people I knew.

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