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Re: Debt charity criticises Rock repossesions
It is scarcely surprising that Northern Rock is far more likely to repossess homes, given that its lending LTVs were the highest in the industry. Very many of those going into arrears with Northern Rock mortgages will owe significantly more than the value of their house. Leaving them in the property for longer, whilst arrears continue to build and prices continue to fall, is not benefitting anybody - except for the fortunate few who manage to climb out of very serious arrears and get back on top of their finances.
I hate to say it, but once people go beyond a certain point there is less and less likelihood that they will recover things. If you owe 125% of the current value of your property, and you were paying a relatively high rate of interest, and you are thousands of pounds in arrears, would you really push the boat out to clear those arrears and get back into the black? Indeed, could you afford to do so, with all the best intentions? I would suggest that most people on NR's SVR, with high LTV loans, are struggling merely to pay their monthly payments let alone to address arrears.
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