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Latest Northern Rock News

The latest news on the Northern Rock Building Society:

October 28, 2009

EU set to approve Northern Rock split

by Kay Mitchell
”EU
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 split into two divisions - a “good ...




October 26, 2009

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

by Kay Mitchell
”B&B
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 savings base and ...




Virgin Money continues its quest to become a bank

by Kay Mitchell
”Virgin
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 wants to take advantage ...




September 28, 2009

BSA argues Northern Rock should return to mutual status

by Kay Mitchell
”BSA
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 to a strong ...




August 17, 2009

BSA against Northern Rock split

by Kay Mitchell
”BSA
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 onset of the credit crunch in autumn 2007 ...




August 4, 2009

Northern Rock “Together” mortgages push up arrears

by Gill Montia
”Northern
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 2008. Excluding "Together" loans, residential mortgage ...




Northern Rock posts first half loss

by Kay Mitchell
”Northern
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 bank. The problems meant it had to seek ...




July 6, 2009

Northern Rock offers mortgages to existing customers

by Gill Montia
”Northern
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 those with at least 25% equity in ...




June 28, 2009

Restructure sees Northern Rock split into two divisions

by Kay Mitchell
”Restructure
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 has now been confirmed that the ...




April 27, 2009

Government plans to sell Northern Rock

by Kay Mitchell
”Government
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 one bad bank, according to the newspaper. It ...




April 23, 2009

Northern Rock’s £14bn mortgage surge

by Peter Charalambous
”Northern
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 £5 billion of that lending occurring within 2009. Despite ...




March 3, 2009

Northern Rock arrears and repossessions soar

by Gill Montia
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 to 2.92%, compared with an industry average ...




February 23, 2009

Northern Rock returns to new lending at 90% LTV

by Gill Montia
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 property website, Rightmove, will ...




February 13, 2009

Northern Rock shareholders lose court battle for compensation

by Kay Mitchell
”Northern
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 finances were assessed and ...




January 22, 2009

Northern Rock staff receive 10% bonus

by Kay Mitchell
”Northern
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 are facing pay cuts or unemployment. The lender ...




January 19, 2009

Northern Rock reinstated as a lender

by Gill Montia
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 actually repaying the £26 billion owed to the ...




January 13, 2009

Northern Rock shareholders seeking compensation

by Kay Mitchell
”Northern
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 contesting, but the way in which the bank's ...




December 3, 2008

Northern Rock holds back on repossession for six months

by Gill Montia
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 level of repossessions was twice ...




November 26, 2008

Northern Rock raises fixed-rates

by Gill Montia
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 by up to 0.3%, potentially adding £40 a month ...




November 18, 2008

Northern Rock leading the way in repossessions

by Kay Mitchell
”Northern
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 the lender’s mortgage book, they account ...