Saturday, 27 March 2010

All Monies Clause

Capitalist PigImage by via Flickr
'All Monies Clause', doesn't sound interesting but it could mean losing your home!

I was just going to throw out some financial tat that landed on my doorstep regarding the joining to the Santander Group by the Alliance and Leicester. You know the type of stuff that you automatically chuck in the bin. However, a section regarding changes cauught my eye. It says that for new mortgage, loan and overdraft customers an 'All Monies Clause' was going to be introduced.

This clause means that any debt you have within the financial group can be secured against your mortgage. Yes, you read that right, secured against your mortgage. So if you have an overdraft with this group as well as a mortgage, if they call in the overdraft then your mortgage is used as security against that overdraft. Can't pay? No problem, they'll sell your house for you to ensure their profits remain and their shareholders benefit.

So we have the government telling us how we should never secure against property yet the financial institutions are creating secured loans with non-secured rates by the backdoor! They want to take non of the risks yet keep all of the profit!

Another very good reason that any government that purports to have the best interests of the country in mind would pull the plug on the whole rotten system. Any party that pledges to shut down this artificial financial construct down gets my vote! 
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