Why is northern rock leading the way with repossessions?
Despite assurances from the UK government when they took over the running and ownership of Northern Rock, the bank is way ahead of any others in the sector with regards to the percentage of properties being repossessed. There is now serious concern that taxpayer's money was used to acquire the bank and now we are seeing taxpayers suffer from an aggressive repossession policy.
At the same time we have seen the private banks refuse to increase their liquidity i the mortgage market and also for many small businesses. While there needs to be balance for Northern Rock between commercialisation and an understanding of what homeowners are currently going through there appears to be very little leeway at the moment and many homeowners are under serious threat of repossession today.
Many have accused the government of hiding behind the fact that Northern Rock is run on an arm's-length basis when in fact they do seem to hold some influence as shown by the recent move by Royal Bank of Scotland (where the government took a 57% stake) to assist small businesses. Quite what will happen in the short term remains to be seen but the Northern Rock takeover has not gone according to plan.
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