Northern Rock goes belly up?

[mikebdomain]

Wheninawhole - hmmmm their shares are pretty low at the moment and for my money might be worth a punt (if I had any spare)

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[WhenInAHole]

Wheninawhole - hmmmm their shares are pretty low at the moment and for my money might be worth a punt (if I had any spare)

My guess is they will be taken over by someone with more money than either of us (a bank!) so yes I take your point.

[mikebdomain]

Northern Rock as a major mortgage lender, rely on purchasing funds on the market rather than using their own deposits as funding. They are struggling to raise capital for lending due to the lack of availability on the market. This doesnt mean that they are broke or going to go bust. It is a cash flow problem affecting their ability to finance future lending in the immediate future. There is no chance that they be taken over (again. not in the forseeable future anyway)

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[mikebdomain]

UK plc is far too reliant on matters eminating from across the pond. If we followed some of our European cousins a little better, we might learn something!

HEAR HEAR...

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[WhenInAHole]

Hmm..well you've said yourself they are a tempting buy so low and City gossip seems to be that they might be taken over as they are vulnerable to a predator...anyway we'll see!

http://uk.reuters.com/article/paperTips ... 0020070910

[mikebdomain]

WhenInAHole - very interesting I missed that.. Thanks

Another more detailed story can be found at http://www.telegraph.co.uk/money/main.j ... ock110.xml

Although I feel pretty safe in dispelling the myth of a takeover by a US investor, they are running scared (and about time) of anything that looks slightly sub prime. Most of these stories are quoting Northern Rocks relationship with Lehman Brothers - when in fact they are one of the reasons NR has securitisation problems in the first place.

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[mikebdomain]

Melenie have you contacted Ron Hutcheon regarding your NR IVA cases?

http://myvesta.org.uk/articles/articles ... Page1.html

I'm not sure how this case is progressing - I seem to remember Andy posting about it a while ago.

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[MelanieGiles]

Mike

I'm not really getting involved in the spat with Northern Rock to be frank - for all their unsubstantiated rejections, I had had some pretty commerical and supportive ones out of them recently as well - but I have advised people I have either turned away or had rejections that they can join in directly if they wish.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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[jpj]

Melanie, you say Northern rock claim that only 10% of people who they refuse to grant IVAs to actually end up going bankcrupt...what are the 90% doing?? if they are insolvent,cant get an IVA granted,and dont go bankcrupt how are they escaping their debt?? JPJ

[MelanieGiles]

I suspect that they are entering into DMP agreements - either informally or formally - and if they are property owners, Northern Rock are probably attempting to secure their debts by way of charging orders.

Do remember that over half the indebted population in this country are in DMPs rather than IVAs or bankruptcy proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
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[j_d]

Hi
I know that what we owe nr is a spit in the great big wide ocean and wouldnt have made much differance to the current situation but after they refused my IVA yes Lili i did have a little tiny chuckle

how evil of me

sorry folks but they caused my iva to be rejected and the following ten months have been pure hell because of NR

julie

[jpj]

Thanks Melanie.
Oh I see, well i think thats interesting for people on here to note! often the assumption on here seems to be that if NR reject your IVA, you go bankcrupt and NR dont get a penny! obviously thats not strictly the case.I presume they could actually get more back on a DMP than from an IVA anyway??

[MelanieGiles]

In the long run potentially, but for the customer a DMP can be a neverending road where you never get to the T junction to turn around.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
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[fudge34]

Although when I was in a DMP with them they only allowed it to go for 6 months, after that time they said they would not allow a DMP to be in place, despite me taking lots of financial advice and trying to get them to see that this was the only way forward with me. (Had had a loan for 4 years and had never missed a payment until I was out of work) they weren't open to talking about it after the 6 months were up and constantly hassled me to pay back all of the money, even when I said I was considering an IVA but wanted to maintain the DMP in the meantime they said no.

One of the DMP agencies i spoke to said that this is becoming more and more increased with NR, they lean towards the angel of you either start paying back the loan payments as you did before or we will take you to court stance. I think that more and more people will have to consider BR due to this stance and that seems a shame when you have otherwise always been a good and credible customer before.

[jpj]

I realise that, Thats why i was surprised how many people opt for DMPs ! I guess its like running the marathon..seems a good idea at the time,but once you start running you realise just how far it is your going to have to run, and it turns into a long costly experience!