Thursday, November 27, 2008
Now you tell us!
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.