Tag: Northern Rock News

Northern Rock customers to receive windfall

Northern Rock customers to receive windfall

Northern Rock customers could receive a windfall of around £1,700 because of an error in the wording of loan statements. The mistake, made by the nationalised part of the bank, will cost UK taxpayers a total of £270 million. Up to 152,000 customers who took out personal loans of less than £25,000 will receive an […]

December 11, 2012 More
Taxpayers may never recoup bank bailout money

Taxpayers may never recoup bank bailout money

UK taxpayers may never recover the £66bn spent by the government to bailout RBS and Lloyds Banking Group during the financial crisis, a parliamentary committee has warned. The government bought 40 per cent of Lloyds and 82 per cent of RBS in 2008, when the banks were at risk of collapse. Earlier that year it […]

November 16, 2012 More
Northern Rock sale won’t affect compensation

Northern Rock sale won’t affect compensation

Savers with money in both Northern Rock and Virgin Money will not be disadvantaged by Virgin’s takeover of the Newcastle-based bank if either of the banks collapses. Both Virgin Money and Northern Rock will keep separate banking licences following the £747 million deal, which is expected to be rubber-stamped in January. This means that the […]

November 18, 2011 More
NBNK shares suspended amid merger talks

NBNK shares suspended amid merger talks

Shares in financial institution NBNK has had its shares suspended on AIM after it confirmed it is in merger talks. The bank, which is run by Gary Hoffman who is the former chief executive of crisis-torn Northern Rock, was established a year ago to make acquisitions and is set to build a significant presence in […]

September 6, 2011 More
Chancellor to announce Northern Rock sale

Chancellor to announce Northern Rock sale

In his Mansion House speech later this evening, Chancellor George Osborne is to announce plans to sell off state-owned Northern Rock. The crisis-torn bank, which collapsed on the eve of the credit crisis, is expected to be auctioned off and will raise around £1 billion. The Chancellor will say he hopes to find a buyer […]

June 15, 2011 More
Northern Rock to launch 90% LTV mortgage range

Northern Rock to launch 90% LTV mortgage range

Crisis-torn lender, Northern Rock, is understood to be launching a series of mortgage products which require just a 10% deposit (90% loan-to-value). The announcement, revealed by the Financial Times, comes as mortgage lending continues to remain subdued as first-time buyers, in particular, struggle to obtain a mortgage unless they have a substantial deposit. Since the […]

February 28, 2011 More
Northern Rock’s Gary Hoffman to join NBNK

Northern Rock’s Gary Hoffman to join NBNK

The chief executive of nationalised Northern Rock is leaving the crisis-torn bank to join NBNK. According to reports today, Gary Hoffman will assume the chief executive’s role at NBNK – the banking institution set up by two City financial-sector heavyweights. NBNK is set to build a significant presence in the UK and is now trading […]

November 4, 2010 More
Thousands of financial sector jobs lost since Rock crisis

Thousands of financial sector jobs lost since Rock crisis

A report has revealed around 100,000 finance jobs have been lost since the onset of the credit crisis three years ago. On the third anniversary of the run on Northern Rock, there have been significant job losses within the sector. The Unite union said that little had changed to improve the regulatory regime in order […]

September 14, 2010 More
Northern Rock sees losses narrow

Northern Rock sees losses narrow

State-owned bank Northern Rock has today announced losses for the 2009 year fell to £258 million, compared with £1.36 billion in the previous year. Despite the loss, the Newcastle-based bank said it is awarding staff £14.9m in bonuses but Gary Hoffman, the chief executive of Northern Rock, is waiving his payout. Northern Rock said Mr […]

March 10, 2010 More
Mortgage rate cuts from Post Office and Northern Rock

Mortgage rate cuts from Post Office and Northern Rock

Both Northern Rock and the Post Office have launched new mortgage deals with lower rates. The Post Office has cut the cost of its Bank of Ireland lifetime tracker loans from 3.29% to 2.99%, or from 3.59% to 3.49%, dependent upon the loan-to-value ratio. Bank of Ireland has also reduced the price of its five-year […]

January 23, 2010 More
Northern Rock launches “Flexible” mortgage range

Northern Rock launches “Flexible” mortgage range

Northern Rock has introduced a new range of home loans with rates starting at 2.99%. The state-owned lender’s “Flexible” offering includes a two-year tracker at 2.99% (Bank of England base rate + 2.49%) with a £995 fee, or at 3.79% with no fee. Both options are offered at a maximum loan-to-value (LTV) ratio of 65% […]

September 25, 2009 More
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 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 […]

Negative equity afflicts “prime” homeowners

Negative equity afflicts “prime” homeowners

Northern Rock is leading the field in “prime” mortgages that have fallen into negative equity. A new report from ratings agency, Fitch, reveals that almost one in six households at the upper end of the UK property market have home loans that exceed the value of their properties. In the case of the state-owned Northern […]

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 […]

HSBC tops customer service league

HSBC tops customer service league

HSBC is the best high street bank for customer service, according to mystery shopper research by Prophet. The innovation strategy consultants found that of the ten banks surveyed, only HSBC and Citi offer a customer experience ‘above expectations’. Barclays came in third place behind HSBC and Citi, providing a customer experience that met expectations. Lloyds […]

Mortgage interest rates could rise steeply

Mortgage interest rates could rise steeply

Lord Turner, the Financial Service Authority’s chairman, has said that as a result of increased regulatory control consumers are likely to face higher mortgage rates as costs are passed on. The FSA is now considering a number of new measures in order to avert any future banking crisis. The primary consideration is looking to increase […]

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 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 […]