Housing Minister Margaret Becket said on the BBC Radio Four programme this morning (December 4th) that it cost mortgage lenders £35 000 every time they were ‘forced’ to repossess a house when homeowners fell into arrears with their mortgage.
Now I’m sure Margaret Becket hasn’t intentionally constructed a lie or simply invented this figure herself. But it is most definitely a lie and it is a completely fictitious figure too. So where did this piece of fiction come from ?
Could it be from the Council of Mortgage Lenders ?
The truth is most repossessions cost the lenders absolutely nothing. But they cost the persecuted homeowner plenty because it is the homeowner that is made to pay any extra costs incurred by the lender.
Not only does the repossessed homeowner have to pay all the real costs, but lenders invent utterly fictitious ‘costs’ which they add to the final bill to the homeowner. This is all extra profit opportunity for the lender.
This is why the banks were so keen to develop their laughingly labeled ‘subprime’ mortgages. They allow the banks to contrive to make more and more borrowers desperate for a mortgage as the banks falsely label them ‘too risky’ for ordinary, standard mortgages.
This contortion of thinking then allows the banks an excuse to tie these borrowers up by forcing them to accept weasel mortgage contracts worthy only of Shylock the evil money lender. The contracts are specifically designed to fleece the borrower at every turn and push him further into debt as his home is stolen bit by bit by the system the banks have deliberately designed to do exactly that.
You see, the banks have all got together to form a sort of cartel or effectively a monopoly where they all follow the same procedures to milk as much money as possible from their customers and in particular to catastrophically penalise the most disadvantaged and poorer people.
I personally know of a case where a homeowner has been systematically milked of about half a million pounds of the value of his house as he was repossessed four times in rapid succession. Mortgage lenders literally forced him to remortgage again and again by using their artfully constructed lending system to get their hands on nearly all the equity by means of falsely claimed ‘expenses’ and ludicrously named ‘early redemption penalties’ Oh, and rapaciously higher interest charges on the completely false premise of ‘higher risk’.
So where, precisely, does this claim of each repossession costing the mortgage lender £35 000 come from ?
I suspect it is a figure mostly comprising the imaginary losses dreamed up by lenders of the loss of profit they would have obtained if the mortgage had continued.
In other words they have lost absolutely nothing at all except their greedy little dream on some further profit in the future which their twisted minds makes them think they can describe as a real loss now.
It is a lie. It is the same as you or I saying we have ‘lost’ a million pounds because we failed to earn more money than we have. It is a fiction. Just like a lot of what the banks get up to. They are so used to habitual lying they no longer have any understanding of the truth – just like most other career criminals.
Tags: Bank Charges, Banks, Birmingham Midshires, Capital One, Chancellor, Cheltenham, Credit Crunch, Debt, financial crisis, Financial Service Authority, Fraud, FSA, Gordon Brown, High Street Banks, Iceland, Kensington, Labour Party, Lloyds Bank, Lloyds TSB, Loans, money, Mortgages, News, Office of Fair Trading, OFT, Ombudsman, Overdraft, Politics, Poverty, Prime Minister, recession, repossession