x404.co.uk
http://www.x404.co.uk/forum/

Northern Bank warns it will pursue debtors
http://www.x404.co.uk/forum/viewtopic.php?f=19&t=12501		 Page 1 of 1
Author:  Amnesia10 [ Fri Feb 11, 2011 8:24 am ]
Post subject:  Northern Bank warns it will pursue debtors
http://www.bbc.co.uk/news/uk-northern-ireland-12425251

Quote:
The Northern Bank has warned that it will pursue any debtors who gave personal guarantees as collateral to acquire loans.

The bank made a pre-tax loss of £95m last year which includes a provision of almost £143m of bad debts.

Northern bank chief executive Gerry Mallon said: "We look at all forms of collateral which a customer has provided , and if an element of that is a personal guarantee, as our shareholders would expect, we pursue that personal guarantee."

"It is part of the collateral which is given to us as one of the terms of lending and there is no reason why we should not pursue that.

Well I can see the numerous branches of the bank of mum and dad getting cleaned out. I wonder how many more will find themselves in financial trouble because of this? I think that the prospects for people to get on the property lander will be even tougher if family refuse to provide guarantees.
Author:  timark_uk [ Fri Feb 11, 2011 9:53 am ]
Post subject:  Re: Northern Bank warns it will pursue debtors
You can understand it from the perspective of the bank though.
Mum and Dad shouldn't've acted as guarantor. If you do that you've got to accept the consequences should things take a turn for the worse.

Mark
Author:  jonlumb [ Fri Feb 11, 2011 10:13 am ]
Post subject:  Re: Northern Bank warns it will pursue debtors
The Wench's parents are guarantors on our mortgage, as without that Natwest were offering her £4500 towards a property (even with a £16k deposit). Thing is, we're well on top of it and aside from both of us being made redundant at the same time, we're pretty safe to keep paying it.
Author:  pcernie [ Fri Feb 11, 2011 1:44 pm ]
Post subject:  Re: Northern Bank warns it will pursue debtors
Quote:
Northern Bank warns it will pursue debtors


Mind how you go, Gerry :lol:
Author:  Amnesia10 [ Fri Feb 11, 2011 2:37 pm ]
Post subject:  Re: Northern Bank warns it will pursue debtors
timark_uk wrote:
You can understand it from the perspective of the bank though.
Mum and Dad shouldn't've acted as guarantor. If you do that you've got to accept the consequences should things take a turn for the worse.

Mark

Yes I can see it from the banks perspective, but if they had maintained sensible lending criteria then yes it would be irrelevant. Banks should never have given 90%+ mortgages. As for buy to lets they should have been tougher with higher equity requirements. If they had done that then most people would not be in trouble right now. It would have eliminated the possibility of contagion from borrower to guarantor. I blame banks and the government for this mess.
Author:  JJW009 [ Fri Feb 11, 2011 3:34 pm ]
Post subject:  Re: Northern Bank warns it will pursue debtors
timark_uk wrote:
Mum and Dad shouldn't've acted as guarantor. If you do that you've got to accept the consequences should things take a turn for the worse.

Absolutely. To act as guarantor and then say "but I didn't mean it really!" is farcical!
Page 1 of 1 All times are UTC
Powered by phpBB® Forum Software © phpBB Group
https://www.phpbb.com/