Latest: Northern Rock News

EU set to approve Northern Rock split

EU set to approve Northern Rock split

Crisis-torn Northern Rock is to be split into two, after receiving the necessary approval from the European Union (EU). Northern Rock collapsed at the onset of the credit crunch in autumn 2007 after savers staged a nationwide run on the bank. It was then nationalised in February 2008. The plan is for bank to be […]

October 28, 2009 More
B&B mulling over split into good bank / bad bank

B&B mulling over split into good bank / bad bank

Nationalised Bradford & Bingley (B&B) is reportedly considering splitting itself into two in order to raise money to repay its £18.4 billion loan from the Financial Services Compensation Scheme (FSCS). The troubled buy-to-let lender was nationalised over a year ago to prevent it from collapse which led to Spanish bank, Santander, acquiring B&B’s £20 billion […]

October 26, 2009 More
Virgin Money continues its quest to become a bank

Virgin Money continues its quest to become a bank

Sir Richard Branson’s Virgin Money has applied to the Financial Services Authority (FSA) for a banking licence, which would enable the consumer credit arm of the Virgin Group to offer deposit accounts. The move comes at a time when consumers have lost confidence in existing High Street banks following the financial crisis and Sir Richard […]

BSA argues Northern Rock should return to mutual status

BSA argues Northern Rock should return to mutual status

The Building Societies Association (BSA) is urging the Government to return Northern Rock to the mutual sector, arguing that mutuals take less risk than banks owned by shareholders. Mutual building societies are owned by their members, not by shareholders, and are run for the benefit of those members. The BSA said a new report points […]

September 28, 2009 More
BSA against Northern Rock split

BSA against Northern Rock split

The Government announced earlier this year it was planning to split nationalised Northern Rock into two divisions – a deposit bank and a mortgage platform. However, the proposals have met with criticism from the Building Societies Association (BSA) saying that the split would put building societies at a big disadvantage. Northern Rock collapsed at the […]

Northern Rock “Together” mortgages push up arrears

Northern Rock “Together” mortgages push up arrears

Blighted by its “Together” 125% loan-to-value mortgages, Northern Rock has revealed that residential mortgage accounts over three months in arrears rose to 3.92% in the six months to the end of June. The proportion compares with a national average of 2.39% and is up from 3.67% at 31st March 2009 and 2.92% at 31st December […]

Northern Rock posts first half loss

Northern Rock posts first half loss

Nationalised lender Northern Rock has today reported a pre-tax loss of £724.2 million for the first half of the year, compared with a loss of £585.4 million in the same period a year ago. Northern Rock collapsed at the onset of the credit crunch in autumn 2007 after savers staged a nationwide run on the […]

Northern Rock offers mortgages to existing customers

Northern Rock offers mortgages to existing customers

Northern Rock is once again offering mortgages to existing customers. The move follows a gap of well over a year during which period borrowers coming off fixed deals either reverted to the Rock’s standard variable rate or were forced to go elsewhere. The nationalised lender is strictly interested in retaining its best customers and only […]

Restructure sees Northern Rock split into two divisions

Restructure sees Northern Rock split into two divisions

Nationalised Northern Rock is to be split into two divisions – a deposit bank and a mortgage platform. The crisis-torn bank collapsed at the onset of the credit crunch in autumn 2007 after savers staged a nationwide run on the bank. It was then nationalised in February 2008. However, following European Union (EU) approval, it […]

Government plans to sell Northern Rock

Government plans to sell Northern Rock

It has been reported by The Sunday Times that the Government is planning to sell crisis-torn Northern Rock by the end of the year. Under a plan to retrieve some the hundreds of billions of pounds injected into the banking sector, the Government is preparing to divide the nationalised lender into two: one good and […]

Northern Rock’s £14bn mortgage surge

Northern Rock’s £14bn mortgage surge

The nationalised mortgage lender, Northern Rock, has announced plans today to increase lending over the next two years to £14 billion to Britain’s homebuyers. Having sought out a £25 billion bailout from the Bank of England in February last year, it is now in a position to help the stumbling property industry with up to […]

Northern Rock arrears and repossessions soar

Northern Rock arrears and repossessions soar

Northern Rock has reported that its home repossessions rose by 63% last year to 3,620. Arrears also soared with 17,264 borrowers three months or more behind with their repayments at the end of 2008, up from 3,492 at the close of 2007. The rise takes the percentage of the bank’s total mortgage book in arrears […]

Northern Rock returns to new lending at 90% LTV

Northern Rock returns to new lending at 90% LTV

Northern Rock is reversing its post-nationalisation strategy of running down its mortgage book and will begin offering new loans of up to 90% of a property’s value. The move offers hope to the UK’s beleaguered housing market, which despite the recent rise in new buyer enquiries reported by the Royal Institution of Chartered Surveyors and […]

Northern Rock shareholders lose court battle for compensation

Northern Rock shareholders lose court battle for compensation

Former shareholders of Northern Rock have failed in their legal challenge to the Government’s plan to compensate them. Rock’s biggest former investor SRM Global brought the case against the Government, with RAB Capital and 150,000 private investors. The case entered the High Court in January and shareholders were contesting the way in which the bank’s […]

Northern Rock staff receive 10% bonus

Northern Rock staff receive 10% bonus

Northern Rock, which was nationalised in February of last year, has paid almost all of its 4,500 employees a 10% bonus – an average of £2,000 each. The bonus fund, which amounts to £8.8 million, has sparked outrage among politicians with Lib-Dem Treasury spokesman Vince Cable, describing the action as extraordinary since millions of people […]

Northern Rock reinstated as a lender

Northern Rock reinstated as a lender

The bank bail-out package announced today by the Government could contain good news for Northern Rock borrowers and the UK mortgage market generally because the bank is being reinstated as a lender. Since its nationalisation in February 2008, Northern Rock has focused on paying back its debt to the Government. During last year, it was […]

Northern Rock shareholders seeking compensation

Northern Rock shareholders seeking compensation

Northern Rock shareholders are to enter the High Court this week demanding compensation to contest the way in which the stricken bank was nationalised in February 2007. The firm’s biggest former investor SRM Global has brought the case, with RAB Capital and 150,000 private investors. However, it is not the nationalisation itself that shareholders are […]

Northern Rock holds back on repossession for six months

Northern Rock holds back on repossession for six months

Northern Rock is to follow the lead established earlier this week by Royal Bank of Scotland and not begin repossession proceedings until mortgage borrowers are six months or more in arrears with repayments. The nationalised lender has come in for criticism over its repossession policy. In October, debt charity Credit Action claimed that the bank’s […]

Northern Rock raises fixed-rates

Northern Rock raises fixed-rates

In a move that could be seen as a snub to the Government, state-owned Northern Rock has increased rates on some of its most attractive mortgage deals. For new borrowers, the bank’s one-year fixed mortgage rate has increased from 3.99% to 4.19%. Meanwhile, rates on the lender’s two and five-year fixed-rate home loans have risen […]

Northern Rock leading the way in repossessions

Northern Rock leading the way in repossessions

Nationalised Northern Rock recently came under scrutiny after claims that it was being ‘aggressive’ in its repossessions policy. The lender is expecting to be responsible for 10% of all repossessions this year as its 125% mortgages are driving its repossession rate. The 125% mortgage from Northern Rock, known as ‘Together’ loans, represent around 30% of […]