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Government is eroding the appeal of NR’s prime book

Will the government clarify whether Southern Pacific Mortgage Limited and Lehman Brothers withdrew NR’s access to sub-prime borrowing facilities, or is it sending a message that it could not care less about individuals with credit problems?

This lack of clarity, combined with the fact that NR will not offer competitive remortgage rates to existing customers, paints a poor picture of the government’s handling of the lender and sends a negative message to cli-ents, other banks and the whole financial services industry.

In fact, I fail to see how the government’s running of NR fits in with the principles of the FSA’s Treating Customers Fairly initiative.

The government should be encouraging the market back to the funding table rather than worrying it to death. By alienating sub-prime customers and offering them inferior rates, it seems to be encouraging a rise in repossessions and forced sales.

I can understand the government’s eagerness to recoup taxpayers’ money but slashing new business volumes, cutting revenues generated by introducing business and pushing away pro-ven payers is wrong.

By adopting tactics such as these, the government will slowly erode the remaining purchase appeal of NR’s prime book.

Until we see a conclusion to the NR saga, lending and funding in the industry will continue to wheeze so I urge the government to look again at the way it is managing the lender.

Every move it makes sends shivers through the market and already we’ve seen other lenders responding by withdrawing or trimming their sub-prime terms.

Andrew Botte
Chase Evans HomeLoans
South Wigston
Leicester

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