Northern rock today announced that it will reduce its mortgage book by forcing its current customers to seek other lender, by offering them only their standard variable rates (currently 7.62%) This will affect the hundreds of thousands of borrowers whose Fixed rate mortgages are now ending.
Those borrowers who are unable to find/change to a new lender will just have to pay the ever increasing interest rate.
They predict that there will be an increase in forced repossessions as already struggling borrowers fail to maintain their mortgages under the new higher interest rates, thus relieving Northern Rock of even more of its mortgage burden and enabling the company to be downsized and better able to pay back the public sector loan.
Those borrowers who are unable to find/change to a new lender will just have to pay the ever increasing interest rate.
They predict that there will be an increase in forced repossessions as already struggling borrowers fail to maintain their mortgages under the new higher interest rates, thus relieving Northern Rock of even more of its mortgage burden and enabling the company to be downsized and better able to pay back the public sector loan.
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