The Taxpayer, aka, Northern Rock Asset Management is to hand back some £270m to 152,000 customers. Apparently the Taxpayer wasn’t used to running a Bank and forgot to print on the statements the amount of the original loan; this meant that it was illegal to charge interest for the loan of the Taxpayers money – so we’ll be foregoing any interest that we should have received, and handing it back to the mortgagee in time for Christmas – an average of £1,775 a piece……
Just as a matter of interest - most of those loans were for less than £25,000 each. Not the sort of sum that buys a salubrious pile in South East England, more the sort of sum that you might associate with the purchase of a heavily discounted council flat in Middlesbrough. Exactly the sort of business that Northern Rock once specialised in.
Given the amount of unemployment currently being endured by unskilled workers in parts of the country that might have property for sale in that price region, even allowing for heavy discounting, I do wonder how many of those loans we were effectively receiving our money back on anyway.
‘Support for Mortgage’ (otherwise known as ‘the Taxpayer pays your mortgage for you’, similar to the scheme we operate for MPs) payments are still available to those receiving pension credits, job seekers allowance or income support. This is normally paid direct to the mortgage company.
Will these Christmas bonuses all go direct to the mortgagee, or will those paid for by the Taxpayer be returned to the taxpayer?
Your starter for ten….