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Northern Rock reduces mortgage assets

18/03/2008

Northern Rock has suggested it will need to cut a third of its staff and reduce mortgage assets by 50 per cent. It has created borrowers with no options when their mortgage deals come to an end.

They are planning to slice 2,000 from its workgroup by 2011, in an effort to help deposit a £25 billion emergency loan Northern Rock was told to borrow from the Bank of England during 2007.

Executive chairman at Northern Rock, Ron Sandler stated: "We recognise that we're supported by the Government and we don't wish to abuse that support by competing unfairly. We'll ensure we strike a sensible balance.Things that are being said aren't always accurate. Our headline rates are between 6 per cent and 6.25 per cent and that's well within the basic band".

New figures emerged indicated that inflation throughout February period rose to 2.5 per cent, this the sharpest increase since May 2007.

The Bank of England's Monetary Policy Committee (MPC), are now facing a difficult balancing act towards protecting consumers against a down going economy.

Inflation throught the UK has continued to grow.