Together mortgage from NR - made in hell?

[Emily]

So NR have lost 600 million, half year profit report - most are from this ridiculous mortgage allowing people to borrow 7 times their income or 125% mortgages.

They should accept every IVA that they get to deal with as they created this bitter pill for people to swallow. It is lenders like this Bank that give UK PLC a rotten name, the other Banks are also guilty!!!

Notice that in the US many CEO from top Banks have lost their jobs, apart from NR's Applegate the rest have kept their jobs. People are so thick skin they don't resign with integrity....a sign of the times, maligant malaise in the whole credit market. It is nice to see the FSA have woken up and seeing their man ushering in an new era of doing so some regulating at long last.

[Andrew Graveson]

Hi Emily,

I think everyone would accept that Northern Rock exposed themselves with their lending policies but would you not agree that brokers may have exposed their clients to risks, and that the borrowers willingly played their part as well by exposing themselves in the same way?

Not defending the lending policies of the time but I think it's a little too easy to extend all of the blame to the lender itself.

[Emily]

There has been a number of FBI indictments as much as 400 on Brokers, lenders, fund managers in the US on subprime loans as they were all acting dishonestly to mislead customers....the FSA have been hunting down brokers in the UK and have caught many responsible for frauduent applications. You can see their names in the FSA website.

There are the talk of misselling of PPI and even IVA but this subprime lending is the biggest rat yet caught.

Banks and Brokers especially in the US misold mortgages - ninja loans - no job, proof of income or assets.In the UK the idea of a self declaring income for mortgage application is obtuse and so is any 100%/125% product - they created the housing bubbles which have now burst. I say stick to old fashion borrowing based on saver diposits and stop this brazen use of whole sale markets from Europe and the US which subprime brokers here loves.

The banks encourage people to take out loans they can't afford...thats the charge.... as a anology not that dissimilar to the OFT win on Bank charge case as Banks {allow people to go O/D and say thats part of the service and charge in the process} thats encouraging and not discoursging