Wednesday, September 2, 2009
More from our ‘high quality loan book’
Arrears on Northern Rock mortgages have increased by 12 times during the credit crisis. Long-term arrears on NR's mortgage-backed bonds have risen to 4.7%, from 0.4% in September 2007, S&P said. Northern Rock mortgages may have higher arrears than average because of their elevated loan-to-value ratios and the companyâ€™s policy of lending to poorer customers, S&P said. Northern Rock's repossession rates more than doubled from 0.4% to 0.9%, while the average loss on properties repossessed by the company rose to Â£26,058.