100% Mortgages Lender Northern Rock

Northern Rocks emergency loan from the Bank of England has ballooned to an eye watering £7.75bn.

The lender has been criticised for lending above the value of the property which enables people to consolidate credit commitments. 100% mortgages & 125% mortgages are only lent to borrowers with a good credit record.

If borrowers had been more responsible in repaying their previous commitments, the more they would be lent compared with if they had not been prudent in not paying their past commitments. This is how its higher multiples of income have been calculated to offer the 100% mortgages.

 The 100% mortgages product seems to have held fast and the arrears on their mortgage book had not been extreme and therefore had not been the bone of contention or the Achilles heel.

The blame has been squarely placed at the feet of the American market.