Have They Learnt Nothing? 10 Years on From Crash, Ex-Northern Rock and Lehman Chiefs Are Selling Bundles of Subprime Loans in £1 Billion Spree

By Jamie Nimmo | 15 September 2018

DAILY MAIL — A subprime mortgage lender set up by former Northern Rock directors is to sell £500 million of controversial mortgage-backed securities in a deal that has alarming echoes of the financial crisis.

The plan by Belmont Green means it has packaged up and sold more than £1 billion of mortgages to investors looking to cash in on higher-risk home loans, The Mail on Sunday can reveal.

Mortgage-backed securities were made famous by the film “The Big Short” and have become a byword for the 2008 financial crisis.

The toxic bonds – mortgages that are bundled up and turned into securities that can be traded – caused Lehman Brothers to go bust exactly 10 years ago yesterday. The collapse triggered a global financial meltdown. […]