Northern Rock still lending to customers - high risk loans

Thusday, October 11 2007

U.K bank, Northern Rock, is struggling to win new mortgage business.

The bank is continuing to sell its controversial 125% mortgage and personal loan package, which means it has not yet scrapped its high risk lending rules.

Home buyers are still able to borrow up to six times their annual income from Northern Rock.

Most lenders have tightened their lending rules in the aftermath of Northern Rock's bailout by the government more than a fortnight ago.

Mainstream banks and building societies have targeted safer customers with higher credit scores.

With High risk loans, the borrowers can fulfill any of their needs, like debt consolidation, wedding expenses, educational expenditure, home improvement, etc. The borrower can take up an amount in the range of £1000-£25000 for his needs as he is not pledging any collateral also with the lender. The borrower has a term of 6 months to 10 years to repay the loan amount.

SOURCE: story.malaysiasun.com