I have been watching the problems in the financial world with more interest over the past couple of days because I have a mortgage with Northern Rock.The BBC has a good summary of the situation for concerned customers.
I started wondering last night what would happen to my house if the bank did go under. (Highly Unlikely)
Will they have to sell my house to pay off their debts?
Or if the bank stops trading, would I never have to pay my mortgage again.
Well there is mixed news for people with Northern Rock mortgages. It seems our homes would not be repossessed but we would have to carry on paying our mortgages. Our mortgages are probably the strongest assets the bank has.
More disturbing is that the worlds banks are in this mess. A lack of regulation in the US and sharp practice, selling mortgages to America's vulnerable poor, that will never be paid back, has created a mess here in the UK.
A shed load of cash has gone missing and someone is going to have to pay for this.
I am pretty sure that no one is going to be rounding up those ultimately responsible.
