Yeah heard on this on Five Live on my way home yesterday, did seem a bit arse about face for us to be loaning the banks money  

Be a good gesture to the tax payer to allow 50% of that loan to turn into a Northern Rock account or something at some point, once it was stabilised. Cant see that happening though somehow.

Is that figure per year, per month, per lifetime ?

Is that figure per year, per month, per lifetime ?

per lifetime.  The company owes the bank of england and therefore us 23billion and rising.  split the amount they owe between the tax paying people of the country and voila (more or less)

I just find it a little ironic that were lending Northern Rock money at an incredibly low interest rate and its only way of repaying us is by charging us higher rates of interest on mortgages.  When its maybe a few pounds per person fair enough but as were now approaching £1000 per person its starting to get a little silly.  Id rather the bank of England absorbed the bank tbh.  Maybe all the mortgage customers could get an interest rate on their mortgages that matches the rate were giving Northern Rock

Until something changes, theyre borrowing our money at a low rate in order to charge us a high rate when we borrow it back.

Government is getting 1% above so its a reasonable deal, if they dont end up tits up.

Its funny really - the UK government is in excess of £1 trillion in debt itself.

I just find it a little ironic that were lending Northern Rock money at an incredibly low interest rate ...

the BoE is(or at least was) lending money at thier penalty rate

so were not doing too badly

I dont have a mortgage so I am quite happy for the country to be making a profit on NR.

yup they pay us very slightly over base rate so were getting some money back.  Not much tho.

The main problem being that the largest cash bidder (Virgin) is basically offering to inject £11 billion while NR already owe £25 billion+.  Its only worth it to any investor if the BoE extends the loan to the new owners.

When that happens, we change rescuing the bank to loaning Richard Branson £14 billion at almost negligible interest rate to buy a normally profitable company.  You may not have a mortgage but lending Branson 14 billion to buy something that is worth a lot more?  That doesnt sound dodgy to you?

Without the loan from us, noone will buy NR.  The rate of interest paid to the BoE is so low its an awesome deal for the buyer