Northern Rock: how do you solve a problem like arrears?

Northern Rock’s 125 per cent loan-to-value Together mortgage range accounted for 70 per cent of its repossessions in the first half of 2008.

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I am surprised it is not more and given the lack of assistance these borrowers are receiving, surely an even greater number of Together customers will be repossessed in the months to come.

When asked what is being done for these consumers, who were in negative equity as soon as they signed their contract, Northern Rock’s bosses just point towards the panel of advisers they have appointed.

Mortgage advisers are a special bunch but they cannot do magic and conjure up a reasonably priced 100 per cent LTV plus deal out of thin air.

To read the rest of this Home on the Range blog - and have your say - click here.

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