"Our new products, which will be offered within our prudent risk appetite and only to customers with good affordability, should appeal to those who have lower deposits and first time buyers."
Don't you just love the linguistics of financial irresponsibility; "prudent risk appetite" and "good affordability". Today's announcement is part of a process. Shortly, we will see another announcement where Northern Rock will be offering 95 percent mortgages, again using weasel words like prudent and affordable to justify the slide in lending standards.
The sad truth is that we have learnt very little from the collapse of Northern Rock. There are far too many people who want the bubble back.
2 comments:
"There are far too many people who want the bubble back" - agreed. The problem is that everything we do to make the banks behave better simultaneously causes the money supply to start shrinking. If we are not allowed to replace the lost money with debt free money (as per the Maastricht treaty) then we are all screwed.
What is wrong with 90% LTV?
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