Speaking at a TSC session yesterday, UKFI head of wholly owned investments Keith Morgan admitted that 85 per cent of mortgage borrowers would be trapped within the business that was being run down as part of the restructure approved by the EU Commission last week.
Cousins said: “It can’t be in the interests either of the taxpayer or of the individuals concerned that they end up being prisoners of an institution that can only offer them a very poor mortgage deal. What is being done to protect the interests of those people who will be in the mortgage book that is retained by the old Northern Rock?
“Those are people who if they possibly could have moved their mortgages would have been encouraged to do so already so they will be people in the most difficult circumstances. How are you going to deal with them? Are you going to offer them better mortgage deals as their mortgages run out and have to be renewed. Or are you going to offer them harsh deals.”
Morgan said: “All of our wholly owned companies have to observe the standards of treating customers fairly, it is one of their regulatory responsibilities to do that. Unfair pricing practices such as that would fall foul of treating customers fairly. It would be our job as stewards of these companies where these boards report to UKFI to ensure that these companies did observe treating customers fairly.”