Whilst i dont think it will, and i have listened to the news which states that some of the stories surrounding NR are exaggerated to the max it did get me wondering what would happen if NR or any other bank went into liquidity. Would i simply have to continue paying my mortgage to another organisation?
2007-09-13 21:34:28 · 10 answers · asked by Rob H 1 in Business & Finance ➔ Renting & Real Estate
Nothing will happen to your mortgage in that you already had the money and bought the house. You will have to keep paying to someone, regardless.
2007-09-13 21:44:17 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I think your mortgage would be taken on by whoever buys over Northern Rock(if that happens!!!). You would continue paying the mortgage under the same terms. I think the only people who should be worried about the situation are those who have invested/saved with NR. Did you see on the news how much their shares went down yesterday?? 639p - 33p.
2007-09-14 05:07:00 · answer #2 · answered by JOANNE C 3 · 0⤊ 0⤋
NR would probably sell all its mortgages to another company. They are valuable assets, since they bring in income to whoever owns them. So if NR goes out of business you are still going to have to pay to someone else.
2007-09-14 07:22:57 · answer #3 · answered by AnOrdinaryGuy 5 · 0⤊ 0⤋
Its unlikely they would go bust tbh. Even if they did, recievers would simply sell of their assets to the highest bidder. Your mortgage is an asset to the Northern Rock.
The current situation is simply a cash flow thing. Beacuse of recent tough trading on the currency markets banks are reluctant to borrow each other money to cover shortfalls. More and more banks are having to go to the lender of last resort (BoE). Barclays did it recently
2007-09-14 07:21:55 · answer #4 · answered by footix2 2 · 0⤊ 0⤋
It's probably the same in the UK as in the States (or "Colonies", and one friend loves to remind me!). If a bank goes into liquidity, the notes get sold to pay off debts. Whoever picks up those notes will still require that you honor them, and the terms shoud not change.
2007-09-14 04:48:23 · answer #5 · answered by Pete S 4 · 0⤊ 0⤋
Your mortgage would be sold to some other firm. You'd keep making payments per contract. As far as you are concerned, it's a non event.
2007-09-14 06:05:37 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 0⤋
i am sure your mortgage would be secured by another company.you will repay 2 to 3 times the money you borrow on a mortgage.its a good deal for a `lender,
2007-09-14 04:44:21 · answer #7 · answered by HaSiCiT Bust A Tie A1 TieBusters 7 · 0⤊ 1⤋
What's happening with Northern Rock??
2007-09-14 04:45:38 · answer #8 · answered by Anonymous · 0⤊ 1⤋
YOUR BEST BEST IS TO STOP PAYING YOUR MORTGAGE FOR A MONTH OR TWO UNTIL THE COMPANY IS EITHER BOUGHT BY SOMEONE ELSE OR IF IT GOES BUST. SAVERS ARE IN A WORST POSITION. SAVERS SHOULD TRY AND WITHDRAW AS MUCH AS THEY CAN AS NOT ALL THEIR SAVINGS WILL BE PROTECTED. I HAVE NOT BEEN ABLE TO GET IN TOUCH WITH ANYONE AT NORTHERN ROCK THAT MUST TELL YOU SOMETHING
2007-09-14 04:48:43 · answer #9 · answered by charlie 2 · 0⤊ 2⤋
I cant give you the answer.but go into martins money tips and in the forum there are people there who are mortgage advisors who just help with information they are prompt in giving answers too.good luck.
2007-09-14 04:46:45 · answer #10 · answered by keyhole kate 3 · 0⤊ 1⤋