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Do I Move My Money Out Of A&l Now (before The Markets Open)

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So, Fannie and Freddie are in trouble, IndyMac has been seized by the Fed. The markets open in the morning, what are the ramifications for the UK mortgage lenders? Is it time to shift my (minimal) savings out of A&L and into something else - if so what?

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Nah leave then in if you are getting a good rate, A & L are not going bust anytime soon.

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So, Fannie and Freddie are in trouble, IndyMac has been seized by the Fed. The markets open in the morning, what are the ramifications for the UK mortgage lenders? Is it time to shift my (minimal) savings out of A&L and into something else - if so what?

assuming minimal savings means <35k i think you're money is guaranteed by law anyhow.

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assuming minimal savings means <35k i think you're money is guaranteed by law anyhow.

You want to show me a link specifying the MINIMUM coverage the scheme gives you? :rolleyes:

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I was in the same position last week. I put half in a Nationwide ebond and half in a 1 year bond at Icici. I didn't do this entirely because of the chance of A.L collapsing, it was mainly because i was sick of having to keep looking at the details to see whether they had reduced my interest rate without telling me, and the fact i had to keep putting 500 in every month.

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Guest Steve Cook
So, Fannie and Freddie are in trouble, IndyMac has been seized by the Fed. The markets open in the morning, what are the ramifications for the UK mortgage lenders? Is it time to shift my (minimal) savings out of A&L and into something else - if so what?

I'd get money out of any bank that has shown a weakness over the last few weeks. A&L are, i guess, a prime example. where to put the money? There is the bloody question!

I guess, you place it in deposits of no more than £35k in the banks that have shown the least stress recently.

Beyond that, if you are really feeling doom-mongery...

There is always the matress....

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I've got £900 in there. I check on it today, still seems to be there. I clicked to transfer it to my current account but then held off. I know if I move it to my current account I'll never get round to moving it somewhere else and, even if I do, it will lose a couple of weeks interest while I move it around.

Can't be @rsed.

I don't actually want to see any bank go to the wall. So I'll leave my few grand in Bradford and Bingley too.

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I took approx £34k out of each of B&B and A&L and put it into Northern Rock last week.

NR are offereing as good a rate as anywhere (and it's supposedly 100% safe).

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Thanks for the answers; but my gut feeling is; if the 2nd largest mortgage lender in the US can go t!ts up, what is there to stop the likes of A&L going the same way? And yes I understand my money is underwritten by HMG, but I really don,t want to have to wait in line to get my savings back after the bank has gone under.

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Thanks for the answers; but my gut feeling is; if the 2nd largest mortgage lender in the US can go t!ts up, what is there to stop the likes of A&L going the same way? And yes I understand my money is underwritten by HMG, but I really don,t want to have to wait in line to get my savings back after the bank has gone under.

if youll get it back

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Well I was thinking about pulling out of RBS and heading for HSBC, but now I'm thinking Northern Rock since it's got nowhere to fall ( Not that I know anything bad about RBS except they had rights issue, which in itself makes me twitchy.)

So (ironicly) I would say Northern Rock has to be the safest.

On the 35k gurantee- it's not backed by the government but the FSA, which is funded by, guess who, the banks. A lot of people think the FSA is branch of government but it's not. Not to say that HMG would not ultimately do the right thing, but the FSA scheme has no large pot of money like it's US equivilent, so you could imagine a lot of procrastination about payment if it came to the crunch.

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I know, but I,m still waiting for - sensible - answers as to where to put my cash! Markets open in 8 hours or so, running out of time...

Northern Rock or Post Office savings if you think that the govt would be good for it if it all went tits up.

An ETF Short Term Commercial Bond fund if you think that interest rates will go down, however, if you don't think that the govt. is good for it then why would you trust corporations?

Gold....possibly, who knows.

Otherwise there's the mattress.

to decalre an interest most of ours is in Lloyds although we have recently transferred a significant amount to Northern Rock.

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Guest Steve Cook
I don't think the government will let any bank go under. They started down a path with NR that they really should not have gone down.

If there was a major run on a large proportion of the banking system, the government would have two choices:

1) let them go under and, in turn, allow millions of people to lose their deposits.

This would lead to civil unrest

2) fund the banks with money created out of thin air by the CB. This would lead to hyperinflation. Meaning that everyone's deposits would be worth sod all.

This would lead to civil unrest

All in all, a bit of a conundrum, really.......

Edited by Steve Cook

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Was reading about this in the independent today.

Broon wants people paid out within a week if a bank goes bust. Also wants the "guarantee" to be upped to 50K. Financial Services reckon a week is not realistic and mention a month.

Banks, still haven't had to put any money up front.

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An ETF Short Term Commercial Bond fund if you think that interest rates will go down, however, if you don't think that the govt. is good for it then why would you trust corporations?

Quite. ALL financial assets are looking rather risky at the mo.

Gold....possibly, who knows.

Otherwise there's the mattress.

I'll second those two!

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So, Fannie and Freddie are in trouble, IndyMac has been seized by the Fed. The markets open in the morning, what are the ramifications for the UK mortgage lenders? Is it time to shift my (minimal) savings out of A&L and into something else - if so what?

I dont think they are likly to go bust.

But I do object to their existance on the back of massive BTL profits which might also be their downfall.

If you are in a fixed term product, with pentalties including lost interest, stay in.

If not, move it and get a better rate somewhere else, thereby improving your return and also relieveing your worry in one more. No downside for you.

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  • 395 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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