What is happening with Northern Rock?

[tigwig]

I have just found out via another thread that Northern Rock may be going bust. Is that true? What will happen if they do? ( I have a loan with them)

[Jayla]

My mortgage is with Northern Rock so I looked into this. NR has apparently been offered funding from BofE but are not in danger of going bust. The BBC says "Anybody who is waking up this morning who is either a saver with Northern Rock or has got a mortgage can be absolutely confident that they have got their money with or they have borrowed from a very sound financial institution." And BBC correspondent Declan Curry says that "With Northern Rock share price falling it could make it vulnerable to a takeover bid from one of its rivals." But I have no idea what a take over would mean for borrowers?

[neo.]

They have way more mortgages than savers funds. I think NRock shud start recinding peoples mortgages of individuals if they withdraw their funds. They dont have the liquid funds to offer more mortgages..thats the problem as they cannot get finance themselves to be able to do that bar BOE.

Every major bank will want to take them over as their mortgage base is 5th biggest in country. So they are unlikely to go bust themselves but be integrated into another bank who will then become huge themselves as their assets compared to what they will have paid for themwill be massive..