Northern Rock customers to suffer say National Homebuyers
There are concerns that Northern Rock mortgage borrowers could face financial difficulties as a result of the bank's nationalisation.
[UKPRwire, Wed Feb 27 2008] Alistair Darling announced that the bank would become publicly owned yesterday (February 17th).
The move has sparked huge debate about the reputation of British banking but mortgage advisor Ray Boulger has highlighted that many borrowers may face bigger problems in the form of financial difficulties.
"At the moment most people who have a mortgage with Northern Rock which is coming to the end of the deal have been moving away for the last few months, just because Northern Rock's deals are uncompetitive," Mr Boulger told Channel Four's News at Noon.
"That is what most people will continue to do. If they can't move away for any reason, perhaps because their credit status is not very good, or because the value of their property has not risen and they are still borrowing over 100 per cent, they may have no choice but to stay with Northern Rock and either go onto their standard variable rate or perhaps take another uncompetitive deal," he added.
Fast property sale expert Julian King adds, "People looking for a quick property sale are encouraged to seek an alternative to the traditional open market approach.
"Selling a property through an estate agent now incurs not only a commission payment but also the cost of a Hips pack. By selling to fast property buyers like National Homebuyers or Sure Offer, the homeowner can avoid the costs and the likely delays and uncertainties of selling on the open market."
Mr King is a director of National Homebuyers, the UK's largest quick sale property firm. He is also a founder member of APBA [Approved Property Buyers Association] which is calling for regulation in the quick sale and Sell and Rent Back industries.