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Northern Rock mortgage arrears increase


Northern Rock, the major mortgage lender, stated that the number of customers in arrears on their current loan has increased twice since March 2008.

Northerern Rock customers found it increasingly difficult to keep up with mortgage repayments. They struggled to boost savings, which before its crash in 2007 peaked at almost £25bn.

They have encouraged new and existing customers to redeem their mortgages in a way to progress, and to divide the size of its mortgage lending from around £100bn.

The firm admitted that they were making progress 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."

completion could be hampered while the UK market stands "highly uncertain".

"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."

Mortgage interest rates at its peak has caused difficulty for homeowners, results indicated that this could be the worse year for house repossessions.

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