The latest figures from Northern Rock show a 68 percent rise in their home repossessions to 3,710 in the six months to June 30, against the same period last year. The Council of Mortgage Lenders predicts that 45,000 properties will be repossessed this year – up from 26,200 last year.
In response to these figures Britain’s largest charity for the homeless (Shelter) says
Northern Rock Plc, the mortgage- lender nationalised in February, has an aggressive” approach to home repossessions which must be stopped by the government!
Unite and Unison trade unions, which help fund the governing Labour party, have also called on the government to:
Use its influence to reduce repossessions by state-backed lenders.
Chief Secretary to the Treasury Yvette Cooper told Sky News she wanted a:
more responsible” approach to repossessions and the banks should adopt a more lenient approach.
So let me get this right. The government, the unions and some charities want the nationalised mortgage lenders to “go easy” on those who default on their loans. Consequently, Northern Rock et al’s bad debts will rise at the tax payer’s expense. Borrowers who were more prudent and didn’t over extend themselves will now have to foot the bill via taxes for the more “tolerant” approach to mortgage arrears.
But, it gets worse. I suspect a significant proportion of Northern Rock’s loan book is based on fraudulent income declarations by the applicant (Read more HERE)
Any idiot (see conclusions 3 & 4 February 18, 2008) could have anticipated the bind the Government have put themselves into!
