Monday, February 11, 2008
They’re still chucking money at people
Beleaguered Northern Rock faces growing criticism for continuing to offer mortgages worth more than the value of borrowers' homes. The bank, which kept afloat only because it is underwritten by the taxpayer, still markets its Together mortgage deal, where homebuyers can borrow up to 125% of a property's price. Borrowers signing up to such loans instantly fall into negative equity. A Rock spokesman said: 'The Together mortgage is a legitimate product that performs well and helps people on to the housing ladder.'