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I pity the poor souls that were convinced by the unrealistic predictions of those in the mortgage industry to take out a loan for more than the value of their home. Some 70 per cent of all the homes repossesed by Northern Rock in the last six months were Together mortgages.

And the level of arrears on these these loans is twice the industry average. Yet of the Rock's non-Together home loans the areas level is significantly less than the industry rate.

It is a disgrace and an amazement that Adam Applegarth, former chief executive of Northern Rock, is idling away his time with a few leisurely games of cricket.

His approval of a lending policy that was based on investment risk has jeopardised the homes of thousands.

They are unable to remortgage, facing soaring costs, have no prospect of moving house and many are in danger of losing any roof over the heads altogether.

But Mr Applegarth is sitting pretty on his payout having been forced out of the stricken lender.

Okay, so no-one foresaw the credit crunch. But for years newspapers reported on how dangerous these 100 per cent plus loan-to-value deals were. These were not our opinions, but those of others working in the sector, those whose salaries and bonuses did not depend on selling loans.

Time and again Northern Rock fended off allegations that lending 125 per cent of a property price was dangerous. This was purely because house prices kept rising and because of the incorrect assumption they would simply continue to do so because inflation and unemployment were low and there is a shortage of housing supply.

Were these set of assumptions properly explained to first-time buyers?

Somehow during this time lenders managed to convince themselves by lending desperate homeowners several times their income and substantially more than their property was worth they were doing borrowers a favour.

They were allowing a step on to the ladder for those that could not afford it. They were simply feeding demand.

I am glad at least Sir James Crosby seemed to add some common sense to all this mess last week. The former HBoS chief executive delivered a kick in the teeth to the industry and highlighted a mortgage market that is in complete turmoil.

His letter to the chancellor, while not ruling out government assistance, finished with the punchline that he could still recommend nothing at all.

It is pretty gloomy reading for lenders. But as far as the consumer is concerned it is encouraging. After all, if there were to be government funding to bail out banks and building societies for their reckless lending then we all know who would foot the bill: taxpayers.

It is the banks that opted to lend hundreds of thousands of pounds to individual consumers borrowing many times their income - often with no deposit - on the false premise that house prices would rise indefinitely.

Banks want shareholders, taxpayers and savers to bail them out. I am afraid not.

The taxpayer is already paying for this by propping up Northern Rock, paying increased mortgage rates and watching while their house prices plummet.

For anyone without a deposit of at least 25 per cent and no regular income there are bleak times ahead, predicts Sir James. But is not this a step in the right direction? Home ownership should be a right for all those in the UK. Common sense tells you those wanting to have own their own home should make the commitment of saving for a deposit.

Spend now, pay later

Sir James Crosby's report also spelled out the hard times ahead for mortgage advisers. He fears for your future. It is probably speaking the blindingly obvious, and I have raised it on this page before, but if the next three years is going to be as bleak as he suggests then hundreds of you will go out of business.

It seems to be the nature of estate agencies and mortgage brokers that there is little planning for the long-term. Both expand quickly, pay huge commissions and making millions of pounds profit when times are good. But as soon as lending dries up branches of both shut quicker than Northern Rock's mortgage book.

My question is this: where was the planning for the lean times during those years of getting fat?

Tesco Value-added for the market

Now that Tesco owns its own personal finance arm outright, having bought it off Royal Bank of Scotland last week, I would like to make a prediction: the first supermarket mortgage is not far away.

Before the credit crunch the Post Office proved demand on the high street was there. Supermarkets have healthy balance sheets, a loyal customer base and the marketing power to match anyone. They have already snaffled a hearty portion of the savings, insurance and credit card markets.

If they get the rate consistently right, then they will easily make inroads in to mortgages.