Archive for the ‘Northern Rock’ Category
Northern Rock Together Mortgages – Higher Repos
Northern Rock has revealed that its controversial 125% Together mortgage now accounts for two thirds of its repossessions. Mr. Vince Cable of The Liberal Democrats used to warn that these mortgages were potentially dangerous to the banking industry and certainly with the amount of repossessions there are from this type of mortgage is proving true.
Northern Rock did not want to notice that if people could not raise a deposit or enough money for legal fees, furniture and whatever else when buying a home that they were a risky bet. A home bought for £100,000 meant that Northern Rock on their Together Mortgage would often lend £120,000. Of course if house prices were to continue to sky rocket some equity may have been gained but 25% was a lot to hope for particularly in the last year of the bubble when most sane people were realising that this could not go on indefinitely with or without the banking crisis.