Saturday, October 18, 2008

State bailiffs with baseball bats and attitude

Northern Rock accused over level of repossessions

Debt charities have accused Northern Rock, the state-backed bank, of “aggressively” repossessing the properties of mortgage borrowers who have been struggling to meet repayments.

Posted by paul @ 12:00 AM (763 views)
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5 thoughts on “State bailiffs with baseball bats and attitude

  • Home Counties Expat says:

    “About 200,000 customers took out Northern Rock’s Together mortgage, which enabled homeowners to borrow up to 125 per cent of their property’s value”

    Who’s more to blame, the banks for lending at this rate, or the customers for accepting these kind of offers way beyond their means? I’m sorry I just don’t have any sympathy for people who borrowed at this rate on the assumption that house prices are just going to keep on rising indefinitely and are now in financial trouble.

    This kind of thing makes me sick and is directly responsible for what’s happening all around us now….the bank executives who authorised this kind of policy should be tried in court for corruption charges.

    And when are the houseprices going to start falling significantly then?? Surely massive falls are just around the corner now. Maybe when winter sets in we’ll really start to notice it.

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  • A combination of the need to repay HMG and the pure economics of 100% plus loans and falling house prices. It has to happen for their survival, unless HMG comes to the aid of the distressed home-owner in some way that is neutral to N/Crock.

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  • I’m pretty much agreeing with renting2 here:

    Aggresive tactics are wrong but when I read a few days back that NR was repossessing more home than the average lender the correlation I made was that it probably corresponding the type of self-cert borrower that they happily threw money at. I’m in no way defending NR actions regarding aggresion.

    It could simply be that the govt are telling the rock to repossess now in a falling market to quickly recover their losses. The govt are no doubt really keen to prove that bailing out NR was the right move, especially with an election approaching. Brown will no doubt crow, “we made the tough but right decision to nationalise NR and look what we have achieved, the tax payer has made money from our fantastic decision”.

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  • stillthinking says:

    They have to enforce repossession at Northern Rock because repossessions ultimately lead to the price bottoming out. All the sellers at the moment dithering about, moving into renting, basically sitting in denial, are an absolute disaster for the economy.
    For a lot of the NR borrowers, rapid repossession is going to limit the end debt for them. They can’t pay the mortgage. There is no way out for them. Its a mercy killing to force them out.

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  • This was the logical conclusion of the govt taking control of the mortgage banks. I predicted the current rash of hard luck stories in the media months ago. The next step: wait til businesses start chucking large numbers on the dole, or going bust. Then the cry will go up from the media and rent-a-quote MPs for the gvot to “do something” now they own the several of the big banks. Soft ‘loans’ to failing businesses in ministers constituencies will be put through on the quiet. Mark my words, this will be another British Leyland/Concorde 1970s type fiasco.

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