Press Coverage
04 May 2009
Nothern Rock was slated for changing the terms on its flexible mortgage, while Nationwide received slightly less vitriol for changing its standard variable rate for new customers. Other journalists looked at the lenders most likely to lend in these difficult market conditions.
The Sunday Telegraph (03/05/09) looked at Northern Rock's decision to introduce tougher lending guidelines on its flexible deals, meaning borrowers who had overpaid may not be able to get the money back unless they meet certain affordability criteria. Melanie Bien said: 'Many of our clients who have made large overpayments are now concerned that they will not be able to withdraw their funds. These mortgages have particularly appealed to those who are self-employed, who can use their income earned to reduce their mortgage immediately, but who need to draw funds back at the end of the year to pay their tax. Many are now worried that they won't be able to pay this tax bill.'
In the Observer (03/05/09), Nationwide was criticised for increasing its standard variable rate to new customers. Melanie Bien said: 'It is a shame that a lender which more than any other prided itself on treating all customers equally is effectively introducing a two-tier system. Because there will no longer be a guaranteed margin over base, there will be a lack of transparency compared with before.' In the Guardian (02/05/09), Melanie Bien added: 'Penalising new customers seems out of place for a lender which has usually prided itself on offering the same terms to new and existing customers alike... it is a huge shame that the country's biggest building society should have to go down this route.'
The Sunday Telegraph (03/05/09) looked at the lenders 'most likely to say 'yes''; in other words, those most willing to do business. Melanie Bien said: 'Only a handful of the bigger lenders, particularly the government-backed ones are doing anything much in terms of volume.'