Tuesday, March 3, 2009
This is a dead parrot
Nationalised bank Northern Rock has confirmed that it made a loss of £1.4bn in 2008, but says it is making "good progress" against its objectives. It also said home repossessions jumped by 63% last year, while mortgage arrears soared by 80%. The bank said that 17,264 mortgage accounts were now in arrears, up from 3,492 at the end of 2007. Almost 3% of its mortgage book is now in arrears, well above the industry average. Northern Rock said today that it was developing mortgage rescue solutions to limit repossessions and has pledged not to take possession of a property until at least six months after a customer has fallen into arrears. It has repaid £18bn of the £27bn loan it received from the government last year. This policy will now be reversed and Rock will be growing its lending.