BBC PANORAMA Mortgage Prisoners

FTBlalala

So I do feel for the families that do suffer but everyone loves a blame game nowadays unfortunately. There are T's & C's for a reason.... Like pay day loans.... YOU agree you are happy to pay £200 back if you can have £100 NOW. If you take out a 125% mortgage you need to KNOW how you are gonna pay as much as possible off before you sign the dotted line rather than blame the bank when you can't afford it. Zero Sum you are so right about the stress test of your finances, 7%!

I guess this is a slightly different situation as the mortgages were sold on etc.

North4

I may be wrong , but I think I heard that there were originally about 400,000 mortgages with Northern Rock and that was now down to 65,000 with Landmark. So 335,000 mortgagees 'escaped' to, presumably, a better mortgage deal. It seems likely to me that the 65,000 that are left contain a much higher percentage of potentially problem or risky loans - low (or negative) equity to loan value, low income relative to mortgage payments, poor credit ratings, unfortunate changes of circumstances etc. Therefore, I would expect the mortgage interest rates with Landmark to be higher than the general market to take into account the higher risks.

Thrugelmir

North4 wrote: »

I may be wrong , but I think I heard that there were originally about 400,000 mortgages with Northern Rock and that was now down to 65,000 with Landmark. So 335,000 mortgagees 'escaped' to, presumably, a better mortgage deal.

Bite sized parcels of old NR and B&B mortgages have been sold to various entities over time not just Landmark. Far too big for one entity to absorb.

kingstreet

The point here is that the buyer of this mortgage book said it would offer new rates to borrowers as part of its purchase submission.

It intended to open up as a UK lender offering new products to new borrowers. After three years it hasn't done so, so it appears to be reneging on its commitment(s).

CKhalvashi

Thrugelmir wrote: »

Would you prefer the risk remained with the UK taxpayer? UKAR still holds some 100,000 mortgages. A sizable debt is still yet to be repaid.

Surely if it is being repaid then the reward is with the taxpayer too.

On point though, most of these are likely on Interest Only as there would be some equity now if not.

If the properties are worth less than the mortgage, this naturally isn’t a good position for the government to be in.....

Thrugelmir

CKhalvashi wrote: »

Surely if it is being repaid then the reward is with the taxpayer too.

Until the mortgage books are finally wound up the outcome won't be known. As they get smaller and closer to the bottom of the barrel, will get costly to maintain. The lenders were both nationalised for good reason. Otherwise they could have both remained trading listed companies.

csgohan4

Cerberus the ironic name for the provider, won't they be fined for not following contractual terms such as offering mortgages??

Or maybe it wasn't written down or specific enough

Thrugelmir

csgohan4 wrote: »

MaxiRobriguezs the ironic name for the provider, won't they be fined for not following contractual terms such as offering mortgages??

Not a question of just offering. They need to be underwritten in accordance with regulatory standards. To create a challenger bank isn't an overnight task. Perhaps they are looking for a suitable takeover target. They only bought £13 billion of mortgages. Similar to the amount that HSBC advances in new mortgage funds every year.

As time passes their remaining mortgages will be diminishing in number. Hazard a guess that they too might sell on in the future.

Soundgirlrocks

The only chap I felt had unfairly been treated was the one who had depression. He had a mortgage with an attached loan which he had over paid on but had gone into arrears on the mortgage. Combined he was actually in credit by £1k but they went ahead and repossessed the house. Judge overturned it but it took him 2 years to get the property back and it was damaged when he got it back.

mushroomlewis138

The people who took out the mortgages individual circumstances do not make any odds because the fact is this company have broken there own terms and conditions and why is no-one questioning this? If it was the government that was paying high interest rates when they shouldn't be it would be questioned. It is a disgrace that this company make millions on more than double interest rates which is costing people thousands more on there mortgage not to mention the hardship they are put through.

I took out a mortgage with my husband on his wages we got a divorce and I have had ten years of making these extortionate interest rates and because I am on a lower wage I am stuck as they say a prisoner! Non the less lower wage or not the interest rate is not reasonable. You don't mind companies making money its business but the government allowing this is not fair under any circumstances. Thousands of people are losing there homes because of this - this is a fact. Landmark mortgages have also made many mistakes over the years which unless you know how to work these things out you wouldn't know about. There scare tack ticks are wrong. I spent years not sleeping because of this.

Please don't use one person shown on a tv program to target because if this was you I am sure you would have something else to say about this disgusting rip offs by corporates.

Not to mention that thousands lost all there money in shares when it was originally sold off from the government.

Someone needs to be accountable for this.

Martin Lewis did say this was being put before the government after a long campaign I am not sure when this will happen.