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the end is a bit nigher

Norks Get Smaller

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"this is certainly not a change which indicates that Northern Rock is changing its risk profile"

Would it not be a bad thing if you did, it is what got you into the mess you are in!!!

“The general trend is the removal of the lower LTV products"

Oh it does look as if you are changing your risk profile, a little too late but better late than never!

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How on earth can they still be offering the 125 % LTV? Because it's a fixed rate they can still offer it?

I don't see how they can be offering loans full stop at the moment. If they've got to go to the BOE for the cash, surely they shouldn't be making any more loans? Unless they get some depositors cash. Fat chance of that.

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"this is certainly not a change which indicates that Northern Rock is changing its risk profile"

Would it not be a bad thing if you did, it is what got you into the mess you are in!!!

“The general trend is the removal of the lower LTV products"

Oh it does look as if you are changing your risk profile, a little too late but better late than never!

But doesn't high LTV mean the likes of the 125% mortgage.

They aren't going to turn away someone who wants a million pound house with 100k mortgage, so it appears that you would have to pay the same as someone with 95% LTV; the better off will be funding the FTBers by paying the same spread, but with little risk.

So, it is a "spun" credit tightening in effect only where sensible people are penalised at the expense of the feckless. No change there then, except sensible people won't get their mortgage with NR any more.

If I have understood it correctly.

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But doesn't high LTV mean the likes of the 125% mortgage.

They aren't going to turn away someone who wants a million pound house with 100k mortgage, so it appears that you would have to pay the same as someone with 95% LTV; the better off will be funding the FTBers by paying the same spread, but with little risk.

So, it is a "spun" credit tightening in effect only where sensible people are penalised at the expense of the feckless. No change there then, except sensible people won't get their mortgage with NR any more.

If I have understood it correctly.

Oh my god, I've just re read it after what you have said and I think your right.

"With minimal change to pricing and the retention of the higher LTV products, this is certainly not a change which indicates that Northern Rock is changing its risk profile."

So this means as you say, they'll be lending more to people with small or no deposits! Unbelievable. I thought they'd have to stop their 125 LTV. They've decided 'Subprime is the market we want to be in!'

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But doesn't high LTV mean the likes of the 125% mortgage.

They aren't going to turn away someone who wants a million pound house with 100k mortgage, so it appears that you would have to pay the same as someone with 95% LTV; the better off will be funding the FTBers by paying the same spread, but with little risk.

So, it is a "spun" credit tightening in effect only where sensible people are penalised at the expense of the feckless. No change there then, except sensible people won't get their mortgage with NR any more.

If I have understood it correctly.

I am by no means an expert but I understood it to be Loan to Value. So you can still lend 125% but you need a larger deposit? Going to 125% makes a bit of a mockery of it all and it ends up being a bit of a cash back scheme so you can borrow money at secured rate rather than unsecured rates, I guess it may suit some people requirements. :o

My interpretation is increasing LTV requirements it will increase the need for a larger deposit which the people taking these loans are unlikely to have. ;)

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I am by no means an expert but I understood it to be Loan to Value. So you can still lend 125% but you need a larger deposit? Going to 125% makes a bit of a mockery of it all and it ends up being a bit of a cash back scheme so you can borrow money at secured rate rather than unsecured rates, I guess it may suit some people requirements. :o

My interpretation is increasing LTV requirements it will increase the need for a larger deposit which the people taking these loans are unlikely to have. ;)

I thought they were keeping their 125 LTV which means they pay for the house , and give you 25 % extra for stamp duty , legal fees, white ware and a holiday in spain. No deposit needed.

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I thought they were keeping their 125 LTV which means they pay for the house , and give you 25 % extra for stamp duty , legal fees, white ware and a holiday in spain. No deposit needed.

Ignore my earlier waffles, I think I was just convinced there was no way they could be continuing their high risk lending and on rereading it it seems they are only keeping their highest risk products!

I did a bit of research and found this on the BBC about it. Some text as OP but with extra on mortgages.

http://news.bbc.co.uk/1/hi/business/7026460.stm

"The last nine months has seen a steady increase in the rates available for unsecured personal loans," said Lisa Taylor of Moneyfacts.

"Only four months ago, sub-6% rates were available, whereas today you would be hard pushed to get your hands on a rate of less than 6.9%. :o:o

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