In the history of UK remortgages there have been few that have been as significant as the one that Eve and Ted Branson took out against their home in 1971.
Most people use remortgages for home improvements, consolidating debt, perhaps a special purchase, or even that once-in-a-lifetime holiday. However, Eve and Ted Branson put their home on the line and mortgaged themselves to the hilt to save their 20-year-old son from a possible spell in prison. The money they raised was paid directly to HM Customs & Excise to cover unpaid duty and fines due because their son, Richard Branson, had been selling records in the UK that were approved only for export.
His parents' financial intervention allowed Branson to settle out of court, and so not only saved him a fortune in court costs, but saved him from the possibility of being jailed. How many people wouldn’t bat an eyelid and instantly remortgage their substantial home in order to save their wayward son from prison is open to debate. However, the Bransons had no such qualms and their faith in their son has since been repaid in droves. Not only did he pay them back in full, but he went on to establish a hugely successful business empire that has made him a multi-billionaire.
The Virgin brand has become synonymous with success and, apart from the notable exception of Virgin Trains, it appears that every other business in which Richard Branson has become involved under the Virgin brand has thrived, and been added to his ever-expanding business conglomerate.
57-year-old Branson was knighted in 1999, and his wealth is estimated at over £3billion. He has spent millions pursuing different world records and is renowned for his humanitarian works. As well as various properties in the UK, he owns Neckar Island in the Caribbean, estimated to be worth in excess of £100million. But, it could have been so different if things hadn’t worked out in 1971.
And so it is that the man who was once saved by a remortgage is now in a position to save a financial institution that trades in
remortgages. It was offering products such as that and mortgages up to 125% of the property value that helped get the Northern Rock into dire financial straits, and nearly cause the bank to go under.
So, how ironic that the Northern Rock is on the verge of being bailed out and bought by the man whose own parents’ remortgage not only saved him from a criminal record and a long spell in jail, but helped get him back into financial shape.
Paul McIndoe is an online, freelance journalist and keen hillwalker. He lives in Scotland with his two dogs.
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