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The bank that precipitated the credit collapse and was taken over by the Government has been accused of selling off job lots of repossessed homes at knockdown prices.

Northern Rock properties are being offered for sale with ‘get rich quick’ profits for fat-cat property developers based on exactly the same deals that triggered the banking system meltdown in the first place.

The shocking findings of a Mail on Sunday investigation come in the wake of a series of pledges by the Government to get tough on banks and building societies that refuse to give struggling families more time to clear their mortgage debts.

Northern Rock denies selling job lots of repossessed homes with large discounts.

But this newspaper has established that a list of more than 1,000 homes put up for sale by Northern Rock was used by a self-styled ‘repo man’ to offer ‘cashbacks’ of up to £42,000 to investors who snap up bargain-priced homes.

The ‘cashback’ is created by taking out a mortgage for 85 per cent of the Northern Rock guide price on a repossessed home, having purchased it for just 70 per cent of that price.

The list was drawn up by property investor Ajay Ahuja, who said the details of the properties were obtained from Northern Rock.

Millionaire Mr Ahuja, 36, is unashamedly aggressive in his business methods and offers what he calls a ‘repossession hunter service’.

He said Northern Rock was offering the homes at discounts of nearly 50 per cent because its overriding aim was to get its mortgage money back – not to get the best price for the previous owner.

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