Summary
ABOUT the time it was gearing up to unveil Pounds 724 million losses for the first half of 2009, Stateowned Northern Rock made another much less noticed announcement. It said it would reduce the monthly charge for mortgage borrowers in arrears of three months or more from Pounds 55 to Pounds 25.
Why? 'Because the cost of administering a mortgage account in arrears is about Pounds 25 a month,' it said. In other words, charging the higher fee in the past had been a source of profit.See the full content of this document
Extract
Making Profit From Hard-Up Homeowners
Northern Rock's decision might have had something to do with a damning report on how mortgage arre ars are handled, which was published yesterday by the Treasury Select Committee, but let's give the...
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