It would be nice to follow that headline with something witty and clever about how Northern Rock hasn’t been rolling along with much momentum compared to previous years but that much is obvious to everyone.
Losses in the region of £46 Million have recently been reported in connection with repossessions.
According to moneyfacts that equates to an average loss of £19,350 per property.
The story is a bit ambiguous with the figures but if I’m reading it right that would suggest it has repossessed something like 46,000,000/19,350 = 2377.3 properties since 2001.
For one of Britain’s largest mortgage lenders that isn’t actually very many. Back in August 2008 it was reported that 28,658 repossessions occurred in the second quarter of last year. Or, depending on the source there were 155,600 repossessions in the first half of 2008.
That suggests Northern Rock has only repossessed a fraction of the total number in the UK.
So the figures surrounding UK repossessions are decidedly ‘hazy’ but what if instead of forcing people out of their homes, Northern Rock had partnered with a few housing associations, or perhaps the Government and ‘sold’ an equity share of each property facing repossession. That way they could have raised £46,000,000 instead of losing it.
Some sort of agreement between the homeowner and the Housing Association or Government could have been negotiated so that nobody was evicted but a nominal payment was made to slowly recover the debt.
Could this work for future homeowners? Should these ‘Buy and Rent Back’ companies be allowed to clean up during a time when people are struggling to pay their mortgages?