Saturday, Sep 22, 2007
Bailout Bank Carries On Regardless
Sunday Times: Northern Rock still lending ‘recklessly’
Well I never, who'd have thought, the Northern Rock with Bank of England underpinnings carries on regardless with 117% Negative Equity Mortgages and 6x salary lending figures way ahead of other leading banks.
If your looking for a Sub-Prime mortgage go no further than the rock.
Posted by enuii @ 11:55 PM (640 views) Add Comment
7 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. ck one said...
The insanity does rein supreme... The current financial market remind me of when I was working in telecom at the turn of the century, basically everyone knew it was bo**ocks for 2 or 3 years before we hit the cliff edge; but who cared because even a monkey could pull a six figure salary. The key was to talk in three letter acronyms, which people where too embarrassed to question in fear of looking stupid and being banished from the clique. Once Telco hit the edge it fell like a burning coal through a paper mashie table.
Which the gurus from the last 10 years implode!
2. ck one said...
Sorry it's late and i've type'od, lets try again...
The insanity does rein supreme... The current financial markets remind me of when I was working in telecom at the turn of the century, basically everyone knew it was bo**ocks for 2 or 3 years before we hit the cliff edge; but who cared because even a monkey could pull a six figure salary. The key was to talk in three letter acronyms, which people where too embarrassed to question in fear of looking stupid and being banished from the clique. Once Telco hit the edge it fell like a burning coal through a paper mashie table.
Watch the gurus from the last 10 years implode!
3. paul said...
This is so funny - it completely incriminates the Bank of England's decision to rescue the dodgy bank!
Like giving a recidivist a some money to reform, and watching them spend it all on cheap lager and heroin. Oh dear.
4. financial planner said...
Do you see who is the first commenter? None other than Ray Boulger of John Charcol.
5. Island Of Sanity said...
This is irresponsible as its best and criminal as its worst. What Northern Rock is doing is using taxpayers money to try and trade through this crisis. What the Govt has effectively done is given Northern Rock a licence to do whatever they want by guaranteeing their deposit without getting any say in its day to day running. There is currently no incentive for the management to try and run the effeciently. This would be funny if this wasn't so sad and my money wasn't being used to encourage such practices.
6. david20040_0 said...
From the Times http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2512384.ece
Banks don't give a sh*t anymore because they know the BoE will bail them
Northern Rock still lending ‘recklessly’
Robert Winnett and Roger Waite
Northern Rock stands accused of “reckless” lending after it emerged this weekend that the beleaguered bank is still offering mortgages of six times salary to potential borrowers.
Despite provoking the worst banking crisis for decades, the bank last week offered a reporter posing as a first-time buyer a £180,000 mortgage even though he had a salary of only £30,000.
The loan was at least £30,000 more than other leading lenders were prepared to offer. Repayments for the loan would have accounted for more than 60% of the fictional buyer’s take-home salary.
The reporter, posing as another potential customer, was also offered a so-called “negative equity mortgage” worth 117% of the value of the property he claimed to be interested in buying. The mortgages offered by other banks to the same potential borrower were significantly lower.
7. alan said...
A useful spot, Financial planner.
The more I look at these "informative articles", the more I see embedded VI messages and embedded company advertising.
These days Hollywood films get a lot of financing from "sponsors" who want the hero eating at their food chain, wearing their brands and of course, who doesn't want James Bond driving THEIR car!