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SELL YOUR HOME QUICKLYNorthern Rock home loan debt doubles in 3 months
Northern Rock, the UK’s nationalised home loan provider, announced earlier this week that twice as many of its customers are currently in arrears on their mortgages as was the case three months ago.
According to a report in The Guardian, the lender’s arrears soared from 0.57% to 0.95% during the 12-week period. It was only a few months ago when Northern Rock announced that its arrears were well below average in the industry. The only explanation is that more and more customers are finding it difficult to meet the repayment requirements of their home loans.
The bank is also struggling to build up its savings, which stood at about £25 billion before the crash it experienced last year, and now totals approximately £12.8bn.
A part of the Bank’s strategy to recover its retail savings is to decrease its home loan liabilities. With this in mind, the Bank is encouraging customers to cash in on their mortgages in a move to cut down on its mortgage lending.
"The mortgage redemption programme is progressing well, with redemption levels in the first four months of 2008 in line with the plan," said a Northern Rock spokesperson.