When Northern Rock splits into "Good Bank and Bad Bank"

stradlinho

What do you think the chances are that those in the bad bank will be offered to have part of there mortgage balance written off to enable them to remortgage elsewhere ?

From reading on this board I know of Advantage Mortgages that did this as they were winding the business up. Isn't this the aim for the NR "bad bank", to liquidate and close ?

Hopejack

I sincerely hope this doesn't happen tbh. It's quite annoying to find that some people (not all) who have bad debts/aren't good payers, or even have been in the past are getting what is nothing more than a 'golden handshake' to reduce their LTV so they can get a mortgage elsewhere! It doesn't bode well for those who pay on time and try never to get into debt - it really does make my blood boil!! Those people are left to carry on chipping away on a possibly higher rate deal, some in negative equity too!

I know it won't happen, because I understand the reasoning behind the lender wanting to offload their bad debtors, BUT, wouldn't it be nice if they offered payouts to those who do pay or a better rate deal or something. What happened to rewarding those that play by the rules!!!!

It reminds me of big wigs in industry who screw up and then get given early 'retirement' and a golden handshake as well!

The world has gone mad imo. Sometimes it just doesn't pay to try and do things right!!

Arghh!!! Rant over

Brock_and_Roll

I very much doubt it and even if they do, any borrower who has done this will find it very hard to get a mortgage elsewhere at a reasonable rate, if at all, as effectively they have "made and arrangments with their creditors" i.e. they have not paid back everything they owed and are as such a bad risk.

Thrugelmir

stradlinho wrote: »

What do you think the chances are that those in the bad bank will be offered to have part of there mortgage balance written off to enable them to remortgage elsewhere ?

From reading on this board I know of Advantage Mortgages that did this as they were winding the business up. Isn't this the aim for the NR "bad bank", to liquidate and close ?

Absolutely zero chance.

NR bad bank will be consolidated with the B&B mortgage book. When the risk has reduced ( ie as sufficent capital debt is repaid) the remaining mortgage debt will be sold on to another bank. At the moment there is insufficent security to support the mortgage assets held.

SouthCoast

What about handouts for the Northern Wreck shareholders?