Northern Rock, the nationalised bank, today revealed an 80 per cent increase in the number of its customers falling behind on their mortgage repayments by more than three months.
The bank said that 17,264 mortgage accounts were now in arrears up from 3,492 at the end of 2007. This was equivalent to 2.92 per cent of its total mortgage book, which is well above the industry average of 1.88 per cent.
Northern Rock's worse-than-average position is largely due to arrears in its Together mortgage portfolio, which was on sale before the bank's collapse. The Together product allowed customers to take a mortgage out and get a personal loan on top and arrears for this product now stand at 4.5 per cent — nearly three times the national average.
The Council of Mortgage Lenders (CML) has estimated that 75,000 homes will be repossessed this year as unemployment rises, up from 25,900 in 2007.
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