Print friendly version 12 May 2008

Arrears on the rise at the Rock

Northern Rock has released its trading statement for the first quarter of 2008, revealing the number of mortgages in arrears of three months or more has reached 0.95%, up from 0.57% in December 2007.

The beleaguered bank blamed uncertain economic and market conditions and a shrinking mortgage book, for the increasing arrears levels.

Northern Rock also revealed it had established a panel of intermediaries to assist borrowers coming to the end of deals to move to other lenders. It also has plans in place to further expand that panel.

Ron Sandler, executive chairman of Northern Rock, commented: “While arrears have increased, the credit quality of the loan book remains satisfactory and at a level assumed in the plan. Clearly the outlook for the UK mortgage market is uncertain but progress against our business plan to date is encouraging.”

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