Thursday, Nov 05, 2009
Northern Rock Mortgage Borrowers Should Not Expect Government’s Support
E1 News: Northern Rock Mortgage Borrowers Should Not Expect Government’s Support
According to the statement made yesterday by the House of Commons Treasury Select Committee, thousands of mortgage borrowers of the Northern Rock bank will have few or no financial options left as they will stay with the “bad bank” – Northern Rock Asset Management.
An average of 85% of Northern Rock borrowers, or 476,000 people, will stay with the bank that is slowly collapsing. There mortgage borrowers will be transferred to the “bad bank” as they will be unlikely to remortgage with any other lender. Meanwhile, Northern Rock Asset Management is not expected to offer any new mortgage deals to its existing borrowers.
Posted by uch1405 @ 08:05 AM (236 views) Add Comment
1 Comment
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1. a saver said...
"In addition to a large number of borrowers in negative equity, approximately 10% of loans that are to be transferred to Northern Rock Asset Management, are in arrears."
These people are already getting lots of government support -with artifically low interest rates and a propped up housing market that has prevented their LTVs from deteriorating as badly as they should.
Poor things, having to go to an SVR of 4.79%. I would have been over the moon with interest rates like that when I owned a house.