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EmmaRoid

What Will The 20% Of People Do?

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I'll try again, what I'd like to know is:

NRK taketook 20% of current mortgage business, is that because they are cheap for sensible mortgages or creative/relatively cheap for kite-flying mortgages? Where will this 20% of punters go tomorrow? And next week? and the week after? Will this mean people who have to borrow elsewhere will:

a ) pay another lender another £50-£100 per month because their credit is good - just grin and bear it.

b ) pay another lender hundreds more per month because they're a bad risk and hence probably choose not to re-mortgage and get stuck on their existing SVR paying hundreds more per month.

c ) get told to fook off because they wouldn't be touched with a barge pole.

Any guesses?

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I'll try again, what I'd like to know is:

NRK taketook 20% of current mortgage business, is that because they are cheap for sensible mortgages or creative/relatively cheap for kite-flying mortgages? Where will this 20% of punters go tomorrow? And next week? and the week after? Will this mean people who have to borrow elsewhere will:

a ) pay another lender another £50-£100 per month because their credit is good - just grin and bear it.

b ) pay another lender hundreds more per month because they're a bad risk and hence probably choose not to re-mortgage and get stuck on their existing SVR paying hundreds more per month.

c ) get told to fook off because they wouldn't be touched with a barge pole.

Any guesses?

I have my mortgage with NR, they offered a good long term low rate, I am not high risk, I am told that most of the high risk business in my area goes to GMAC

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I'll try again, what I'd like to know is:

NRK taketook 20% of current mortgage business, is that because they are cheap for sensible mortgages or creative/relatively cheap for kite-flying mortgages? Where will this 20% of punters go tomorrow? And next week? and the week after? Will this mean people who have to borrow elsewhere will:

a ) pay another lender another £50-£100 per month because their credit is good - just grin and bear it.

b ) pay another lender hundreds more per month because they're a bad risk and hence probably choose not to re-mortgage and get stuck on their existing SVR paying hundreds more per month.

c ) get told to fook off because they wouldn't be touched with a barge pole.

Any guesses?

They'll get it at another high street bank, who have just been underwritten by the government. Any of them can offer ludicrous rates and offers in the smug knowledge that nothing can ever happen to them when (not if) it all goes wrong.

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I have my mortgage with NR, they offered a good long term low rate, I am not high risk, I am told that most of the high risk business in my area goes to GMAC

Group A then. Is that what most of their customers are?

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I guess if there are less operators lending money such as Northern Rock then there will be much less money available in the economy! This will affect output and growth in the economy and will provide us with the HPC many of us have thirsted for over the next 18 months! Personally i'd have preferred the market not to have been bidded as high as this in the first place the side effects of HPC will not be pretty :ph34r:

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Group A then. Is that what most of their customers are?

I do not think they had a high proportion of dodgy loans but who knows they built up a fair market share so i guess there will be some

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They'll get it at another high street bank, who have just been underwritten by the government. Any of them can offer ludicrous rates and offers in the smug knowledge that nothing can ever happen to them when (not if) it all goes wrong.

Thats a good point. The green light has been given to the banks.

Any other business would go down the pan but banks operate outside of the normal system!

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I do not think they had a high proportion of dodgy loans but who knows they built up a fair market share so i guess there will be some

They used to have my mortgage business and I'm as dodgy as they come :lol:

Seriously though, with the ridiculous levels of HPI we have had recently, set against a suposedly low inflation and definately low wage rise economy, I think a lot of loans are far more dodgy than they seem at first glance.

In the last crash borrowers defaulted just because the value of the house had fallen and they did not want to pay. If all this bank turmoil causes any sort of recession or HPC we will then find out how many people lied about their income to get a bigger mortgage.

I'm betting that the problem is much bigger than most folk think it is.

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A mixture of all three would be my guess. Whereas the BoE will underwrite NRs' savers (probably because most of them, plus around 6,000 jobs, are in Labour's electoral heartlands - if it had been based in the south east, they'd have let it go down), I can't see them using taxpayers' money to underwrite new mortgages. They haven't got that sort of money to start with.

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