What would actually happen should your bank go bust

[Thedelldays]

I mean...i am with the halifax and have no idea what this merger with lloyds will mean..

 

also, what about those who had mortgages with northern rock for an example...

 

what actually happens to your mortgage should your lender go bust...?

[Ponty]

Dunno, but I'm with Lloyds so it'd be nice to think my money is in safe hands at the moment.

 

I doubt you'll notice much change tbh TDD. The Halifax branding is very strong.

[Dicko]

I'm with the Halifax.

 

I must admit, the past couple of days have been a concern

However, I'd be stunned (and skint) if they went under

[Thedelldays]

I'm with the Halifax.

 

I must admit, the past couple of days have been a concern

However, I'd be stunned (and skint) if they went under

Some bloke on the news said Halifax will be in no danger what so ever in going bust now..

 

my mortgage is with someone else, a smaller company...now, should they go bust (have no idea if they are close to it) would I get a FREE mortgage or will it not really effect me just pay it to someone else..?

[Weston Super Saint]

Unless you had more than £28k in any one bank, you wouldn't notice if the bank went bust....

 

The Bank of England guarantees to repay any money lost up to a max of £28k.

 

I'm sure mortgages would be "bought" by another bank...

[EastleighSoulBoy]

Bradford & Bingley are still struggling I believe. Buy to let mortgages being their particular problem.

 

Nationwide are merging with two smaller 'shire' building societies. Although that is a move which I think was agreed well before all hell broke loose and is not 'out of neccessity'.

[stevegrant]

Unless you had more than £28k in any one bank, you wouldn't notice if the bank went bust....

 

The Bank of England guarantees to repay any money lost up to a max of £28k.

 

I'm sure mortgages would be "bought" by another bank...

I thought it was £35k?

[Hatch]

What if you have an overdraft and the bank went bust?

[Poshie72]

Yes it £35k but what you have to be careful with is if you hold £35k with HBOS and £35k with LloydsTSB at the moment you will get £70k back. When they merge however they will become one entity, so you would only get £35k back.

 

Used to work for LloydsTSB. Glad I dont now. had all the worry of potential losing my job when they took over TSB and the amount of staff that they had to shed was alot less than this time round

[Baj]

Any mortgages you have with a firm that goes bust become ownership of the receivers, and you just end up paying them instead.

[Master Bates]

I'm with Lloyds & HSBC, I have no idea what happens next.

[bridge too far]

I wish people would stop talking us into a crisis that isn't there.

 

I don't mean people on here - I mean the press mainly.

 

Bloody short sellers and hedge fund traders should be shot IMO

[Thedelldays]

I wish people would stop talking us into a crisis that isn't there.

 

I don't mean people on here - I mean the press mainly.

 

Bloody short sellers and hedge fund traders should be shot IMO

 

freddie mac

fannie may

lehman borthers

northern rock

halifax

inflation over double than expected

unemployment to hit 2 million in the spring

energy costs at sky high prices

petrol prices

shares up and down like a yoyo

 

 

sure, nothing is really going on, eh?

[Weston Super Saint]

freddie mac

fannie may

lehman borthers

northern rock

halifax

inflation over double than expected

unemployment to hit 2 million in the spring

energy costs at sky high prices

petrol prices

shares up and down like a yoyo

 

 

sure, nothing is really going on, eh?

 

You forget the wholesale redundancies around the country - well except the Gov't sector of course - and increased food prices....

 

But I agree, not a lot going on at all.....

[bridge too far]

freddie mac

fannie may

lehman borthers

northern rock

halifax

inflation over double than expected

unemployment to hit 2 million in the spring

energy costs at sky high prices

petrol prices

shares up and down like a yoyo

 

 

sure, nothing is really going on, eh?

 

Due to unregulated financial sector in the US and the UK - a hangover from the Regan / Thatcher era

Due, in the main to short selling

Global market forces

the other two - knock effects of all the above.

 

I don't deny things are bad but my point was that a lot of this has been caused by the 'system'. Yes, something's going on, but it's been made a whole lot worse by hysterical reporting - a self-fulfilling prophecy really.

[Guest Hacienda]

freddie mac

fannie may

lehman borthers

northern rock

halifax

inflation over double than expected

unemployment to hit 2 million in the spring

energy costs at sky high prices

petrol prices

shares up and down like a yoyo

 

 

sure, nothing is really going on, eh?

 

All caused by greedy bankers, commodities brokers and hedge funds.

[Ponty]

Due to unregulated financial sector in the US and the UK - a hangover from the Regan / Thatcher era

Due, in the main to short selling

Global market forces

 

the other two - knock effects of all the above.

 

I don't deny things are bad but my point was that a lot of this has been caused by the 'system'. Yes, something's going on, but it's been made a whole lot worse by hysterical reporting - a self-fulfilling prophecy really.

There's been a bit too much time passed to blame any of this on Reagan or Thatcher FFS. If there was a problem the respective countries have had over a decade to address it.

[bridge too far]

There's been a bit too much time passed to blame any of this on Reagan or Thatcher FFS. If there was a problem the respective countries have had over a decade to address it.

 

I don't disagree with you.

 

A fundamental review of the way the global economy works is the answer but the US and UK will continue to hide their heads in the sand.

 

Good article for consideration and debate here:

 

http://www.guardian.co.uk/commentisfree/2008/sep/18/economy.creditcrunch1

[Thedelldays]

i think any administration that has had 11 years in charge and spent record amounts of money on public services and changed financial regulations like never before HAVE to take some responsibility and not hide behind someone who left nearly 18 years ago...

 

then again, i may be wrong..

[Guest Dark Sotonic Mills]

There's been a bit too much time passed to blame any of this on Reagan or Thatcher FFS. If there was a problem the respective countries have had over a decade to address it.

 

Directly yes, but indirectly you can apportion blame. Those of us who were in the housing market in the 80's and saw house prices rocket massively (I bought my first house in 1982 for 32,500 and sold it two years later for 42,500. 12 months after that it was back on the market at 139,000)

A lot of it was down to the greed culture engendered by the Thatcherite monetarist policies. She still has an evil influence over the economy as "New" Labour (or at least Blair's version), follow her policies to the letter)

[bridge too far]

i think any administration that has had 11 years in charge and spent record amounts of money on public services and changed financial regulations like never before HAVE to take some responsibility and not hide behind someone who left nearly 18 years ago...

 

then again, i may be wrong..

 

No, the changes happened before 1997. However, nothing has been done to change them back since- that's just as bad.

[St Landrew]

I don't disagree with you.

 

A fundamental review of the way the global economy works is the answer but the US and UK will continue to hide their heads in the sand.

 

Good article for consideration and debate here:

 

http://www.guardian.co.uk/commentisfree/2008/sep/18/economy.creditcrunch1

 

Agreed. Too much basis of the global economy is on the price of oil. We're too dependant upon it. It's everywhere in our lives, and it's about time we addressed the need to back away from it properly. There are many benefits and several problems however. One of the problems being that the already slightly wobbly Middle-East may become more unstable. That would not be a nice situation at all. However, the OPEC countries cannot continue to play with nations economies as they do, and I sometimes wonder why they raise the price of oil, when quite clearly it will also eventually knock on to do them damage too. In my mind I'm always hoping that when the price of oil jumps alarmingly, it's because the oil companies are aware a wonderful power saving/making invention that is just about to hit the headlines, and they are trying to get some last hurrah out of oil before the invntion comes along to make the world much less oil dependant.

 

Steorn anyone..? http://www.steorn.com/

[OldNick]

I wish people would stop talking us into a crisis that isn't there.

 

I don't mean people on here - I mean the press mainly.

 

Bloody short sellers and hedge fund traders should be shot IMO

BTF I agree with you on that but where were the regulators or the government in this?

The banks were a special case on this and the shortsellers should haveb een stopped immediately. They have overseen the speclators gathering around and did nothing to stop what was an apparent ambush. Millions have been made by a few people with no principle.

I have no time for the bankers who took their bonusses from selling poeple mortgages even though it was patently obvious they could never be repaid.How can you lend people 125% mortgages and not realise that it would go wrong?

This governemnt changed the regulations about lending etc(you think differently) t give us boom and now we are going to have the worst bust ever.

[OldNick]

All caused by greedy bankers, commodities brokers and hedge funds.

you mustn't forget the great British public who have credit card bills as long as your arm. None of them understand financial prudence (oh dear Im not allowed to mention that)

[bridge too far]

BTF I agree with you on that but where were the regulators or the government in this?

The banks were a special case on this and the shortsellers should haveb een stopped immediately. They have overseen the speclators gathering around and did nothing to stop what was an apparent ambush. Millions have been made by a few people with no principle.

I have no time for the bankers who took their bonusses from selling poeple mortgages even though it was patently obvious they could never be repaid.How can you lend people 125% mortgages and not realise that it would go wrong?

This governemnt changed the regulations about lending etc(you think differently) t give us boom and now we are going to have the worst bust ever.

 

Nick, have a look at the article I linked:

 

http://www.guardian.co.uk/commentisfree/2008/sep/18/economy.creditcrunch1

 

It explains the set-up much better than I ever could. I do think the government (whatever hue) should address the regulations, or lack of, urgently.

 

Apparently, the PM is going to do this:

 

http://news.bbc.co.uk/1/hi/uk_politics/7623053.stm

 

It remains to be seen.......

[OldNick]

Nick, have a look at the article I linked:

 

http://www.guardian.co.uk/commentisfree/2008/sep/18/economy.creditcrunch1

 

It explains the set-up much better than I ever could. I do think the government (whatever hue) should address the regulations, or lack of, urgently.

 

Apparently, the PM is going to do this:

 

http://news.bbc.co.uk/1/hi/uk_politics/7623053.stm

 

It remains to be seen.......

Talk about closing the stable door after the hrse has bolted!!! The regulations should have been tightened after Northern Rock at the latest. Anyone with a bit of nous could see the folly of lending when people cant affford it. Peoples wages were going up 3-4% but property 15% and more.However you dress it up it is not sustainable and sooner or later it would go wrong.I misjudged the market too early and downsized my house 3 years ago so to save a lot of my gain, better too early than late but I probably missed out on 20%, that will soon come home to daddy when things get worse but if I could see it the financial whizzkids did but they didnt care as they were getting massive bonusses by ignoring it...as for our government what is their excuse except for opinion polls.Did Blair do Brown up like a kipper or what?

[bridge too far]

But Nick, the whole point about regulations is that the governments here and in the US kow-towed to the banks. The banks didn't want regulation - said they could regulate themselves, thank you very much.

 

Not prepared to be scrutinised but more than willing to come crying to the government for a bail-out eh?

 

Most people in this country moan about too much regulation (I don't, I'm an auditor - I'd be out of a job if there weren't regulations )

 

Now everyone's asking why weren't there regulations!

 

As usual, 'the public' want it all ways up.

[OldNick]

But Nick, the whole point about regulations is that the governments here and in the US kow-towed to the banks. The banks didn't want regulation - said they could regulate themselves, thank you very much.

 

Not prepared to be scrutinised but more than willing to come crying to the government for a bail-out eh?

 

Most people in this country moan about too much regulation (I don't, I'm an auditor - I'd be out of a job if there weren't regulations )

 

Now everyone's asking why weren't there regulations!

 

As usual, 'the public' want it all ways up.

I understand your point BTF but for a government that loves to create jobs and regulations the time they really needed to do so they fall short.I was reading that the government relaxed the regulations to that was similar to before the Crash in 29 and it happened agin.I am getting people from all parts of industry and the majority feel we are a long way from the end and it is going to get worse.

[saint boggy]

I'm with the Halifax.

 

I must admit, the past couple of days have been a concern

However, I'd be stunned (and skint) if they went under

you would not be skint, unless you have savings of more than £35,000. anything over and above that amount is no protected by the financial institutions (and government).if you do have more than that in any one bank/building society then i would advise you to split it into high interest savings or ISA's.

if you have a mortgage or loan with any company that goes under, you will still be liable to pay said debt to the company that buy the debt from the collapsed institution, so unfortunately you would not get away with not paying...(bummer,eh!!)

 

http://www.moneysavingexpert.com/savings/safe-savings

 

 

here is a link that may help people's minds to be put at rest

 

HTH

EDIT: sorry if i repeated what others had said, didn't read the whole thread before posting! d'oh.

Edited 18 September, 2008 by saint boggy

[bridge too far]

I understand your point BTF but for a government that loves to create jobs and regulations the time they really needed to do so they fall short.I was reading that the government relaxed the regulations to that was similar to before the Crash in 29 and it happened agin.I am getting people from all parts of industry and the majority feel we are a long way from the end and it is going to get worse.

 

The Financial Services Authority who are the people who are SUPPOSED to regulate financial matters have announced that short selling is to be banned.

 

http://news.bbc.co.uk/1/hi/business/7624012.stm

 

The problem for ANY government is this. If it interferes too much, it gets accused of manipulation for political gain. If it doesn't, it gets accused of doing nothing.

 

Lose lose situation, really.