Don't Bank On Getting A Mortgage

It seems that when some organizations, shed their building society boots and became banks, they bit off more than they could chew. Bradford and Bingley is a prime example, but by no means the only former building society that has caught a cold. Northern Rock and Halifax - Bank of Scotland, also spring to mind. Wasn't it Alliance and Leicester who boasted that you're a better investor.....?

You are certainly not a better investor with Bradford and Bingley, as it looks as though the dear old shareholders will get nothing, including those who forked out £400 million, for a rights issue in July. The great majority of shareholders are not millionaires, and those who were members when the building society became a bank, and have held onto their stock, are probably hanging on to worthless bits of paper. Such people you can feel sorry for but they are not the perpetrators of the problem.

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Bradford and Bingley were very big in providing Buy to Let mortgages, and to a lesser extent the dubious practice of self certified mortgages. There is no wonder they caught a cold, because there are many who do not profess to be financial experts, who could see the problem coming. Of course the government have been particularly lax in not heading off a worsening situation. It almost seems as though; along with many others they saw mortgages, and house price inflation, as stairways to the stars.

House prices were driven up, not least due to 'Buy to Letters' and Self Certifiers. Many people were encouraged to borrow against the perceived increased value of their properties, and it was all sure to end in tears. But, and it is a reasonable question to ask, who for? British and American taxpayers to name but two, are being asked to foot the bill for excesses the likes of which have never been seen before. There used to be a saying that if you would like to know the value of money go and try and borrow some. That was before the banks borrowed shed loads of international money, and shovelled it out like snowflakes, or stardust!

The chickens have now come home to roost and there is no wonder. In an age of privatization, nationalization is back, and wonder upon wonder, it is some banks, the bastions of private enterprise, that are now in government hands. Many ordinary people are angry at being asked to fork out large sums to bail out irresponsible bankers and financiers. There is an election looming in the United States and there are many in the House of Representatives who have become nervous about recent bail out proposals. We watch with interest from both sides of the Atlantic, and no doubt throughout the world.

Please Click Here to visit the Free Mortgage Advice Web Site.

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don't bank on getting a mortgage
don't bank on getting a mortgage