RSS FeedsNumber of Borrowers with Northern Rock falling into arrears double
13/05/2008
The number of borrowers with the lender Northern Rock falling behind on their mortgage payments nearly doubled over the last three months according to the mortgage lender.
The figures rose from 0.57% to 0.95% which previously Northern Rock had said were below the industry average. This is clearly as a result of customers failing to meet their monthly payments.
In order to try and improve this dull picture, Northern Rock has tried to get costomers to redeem their mortgages early. Due to a peak in mortgage lending in the first quarter of £100 billion, the bank was hoping that this could help in halfing the size of it’s mortgage lending.
Northern Rock said that things were improving in this area, "the mortgage redemption programme is progressing well with redemption levels in the first four months of 2008 in line with the plan."
"More difficult economic and market conditions, combined with a shrinking mortgage book, have contributed to increased arrears levels. However, the overall credit quality of the loan book remains at a level assumed in the plan."
Ron Sandler who is the Executive Chairman pointed the finger at the current state of the economy and the market being a more difficult environmnet resulting in borrowers getting into arrears.