Thursday, Nov 27, 2008
Now you tell us!
Telegraph: Treasury admits Northern Rock lending was 'irresponsible'
The Government has finally admitted what most of us long suspected – that Northern Rock was the most "irresponsible" of Britain's mortgage lenders.
The admission is a marked retreat for the Treasury, which insisted after the bank was nationalized that its mortgage book was "good quality".
Treasury secretary Lord Myners said "Foreclosures are higher in Northern Rock than in other mortgage lenders because its lending was more irresponsible. It is as simple as that."
Northern Rock's controversial 125% 'Together' mortgages accont for a third of their mortgage book, half of their arrears and three quarters of their repossessions.
Posted by little professor @ 09:05 PM (608 views) Add Comment
9 Comments
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1. fjcruiser said...
Like the UK economy is fundamentally sound claim despite all signs pointing out the to exact opposite.
2. phdinbubbles said...
Well bugger me sideways with a fishfork.
3. inbreda said...
and what is there solution to this god awful mess?
let's get lending back to 2007 levels again!
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!
4. Yoss said...
Together = You + Me (and my FAT non refundable banker Bonuses) + Tax payer = we are all well in it Together (Excluding the non refundable £Mil bonuses of course and newly claimed non-dom status.
Personally I think 125%(+ interest and fines) back dated taxes on bank bonuses paid to employees for the last 10 years of any failed bank might make the buggers think and probably win someone an election.
5. plato said...
There seem to be a few Government 'admissions' lately. Is this because it's so bl***y obvious?
6. quiet guy said...
I wonder is there any possibility of legal recourse for NR homedetors about to be repossessed? After all, the financial services secretary to the Treasury has just publicly admitted that NR were the most irresponsible mortgage lenders. Could a judge be persuaded to side with the debtor in a repossession claim? I am a saver and I belive in the sanctity of contracts but I can just about see a scenario in which Lord Myners statement could be used as part of a legal defence by debtors.
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