Panorama: Trapped by My Mortgage
In 2008 the British retail bank Northern Rock was nationalised by the British Labour Government due to problems caused by the subprime mortgage crisis, and in 2010 the bank was split into two parts – assets and banking – in order to aid its eventual return to private ownership. The bank was notorious for lending up to 105% of a customers property value and was lending money it had borrowed in the international money markets rather than leveraging customers bank deposits; its real problems began when the government publicly announced that Northern Rock needed government support, an announcement which led its customers to queue up outside branches to withdraw their money. It was essentially a ‘bank run’.
Trapped by My Mortgage is a 2018 BBC Panorama episode which examines the plights of some of Northern Rocks former customers who remain trapped on high interest rates, their mortgages now taken over by an aggressive private equity fund. The reporter Andy Verity meets with some families who claim that they have been ‘sold out’ by their own government.