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Article: ANALYSIS: Joe Public loses out as bonus row rages.
- Article from:
- Mortgage Strategy
- Article date:
- November 9, 2009
CopyrightCOPYRIGHT 2009 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Amid the noise surrounding the bankers' bonus row two things strike me.
First, Northern Rock has reportedly become the first choice for bonus- fuelled borrowers.
Having launched a range of best buy deals for loans up to #1m it is willing to take a significant percentage of a bonus into account rather than requiring evidence of a consistent bonus history.
I appreciate it has government targets to achieve but doesn't this smack of the bad old days when the Financial Services Authority is pushing responsible lending? If it secures a chunk of bonus-related mortgages it will only take a few to go wrong to have a negative impact on its balance ...