Northern Rock has reported a £585 million loss for the first half of 2008 due to customers failing to meet mortgage repayments . The bank revealed that 1.18 per cent of its customers are regularly unable to make repayments, an increase of 300 per cent on the number of customers having difficulties one year previously. The bank also announced that arrears from these customers increased by nearly 300 per cent as well, up from 0.73 per cent to 2.14 per cent in the last year. That figure represents nearly 4,000 homes, with almost all of those homeowners already in negative equity following the decline in property prices .
The number of repossessions has increased sharply in the last year – up from 2,215 to 3,710. Northern Rock are unlikely to be offered any sympathy, however, as their high risk lending continues to haunt them. The majority of the struggling homeowners took out the ‘Together’ mortgages of as much as 125 per cent Loan to Value. In fact, of the 3,710 repossessions, 2,600 affected ‘Together’ mortgage customers.
As a result of the problems, Northern Rock has had to triple the number of debt management staff it employs from 185 to 500.
Troubled Bank Reports GBP585 Million Loss
Financial Services > e-banking > Banking news
Troubled Bank Reports GBP585 Million Loss
Wed, 06 Aug 2008
Recommended links
Internet Banking GuideBusiness Banking Guide
High Interest ISA Accounts
Leading Current Accounts
Top Pension Providers
British Banks Criticise Cautious FSA
Half of customers hit by banking charges, survey shows
| Banking news |
|---|
| Banks failing on online fraud says MPs report - Tue, 05 Apr 2011 |
| Lloyds TSB is to change the interest rates on its Vantage current account - Thu, 31 Mar 2011 |
| Contactless debit cards from Lloyds TSB - Tue, 29 Mar 2011 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company