Hi Remoc

The thing that worries me, and hinted at in the MSN story, is that people did not understand the mortgages they signed up for were low starter mortgages and that there would be steep rises once the "starter period" ended. And if this proves to be true, i.e. the nature of the lo@n was not explained properly or hidden (so that the "arranger" could get their commission) then the lender should be penalised.

Lenders should insure that the people they lend money to can:

a) Afford the lo@ns they are getting.

b) Understand they type of lo@n they are getting, i.e. fixed or variable, low starter, etc.

and

c) Understand what will happen when interest rates go up or down and that they could loose their homes if they do not continue to make repayments.

Because if these three simple points are not covered by the lenders then everyone looses, from the families loosing their homes up to and including the world economy.

However, from what I understand, lo@n arrangers in the US did not care or bother to check whether the people taking out lo@n agreements could make repayments or understood what they were getting in to.

If this is true then something should be done about these "lo@n arranging" predators.


UK Bob