Rock results reveal heavy losses
THE number of homes being repossessed by Northern Rock rocketed by 63% last year as the Newcastle-based bank today revealed annual losses of £1.36bn.
However, the level of repossessions this year so far is expected to have fallen since the end of last year amid a fresh commitment from the bank not to seize an owner-occupied home for at least six months after they fall into arrears.
The bank, now owned by the Government, repossessed 3,620 homes last year as borrowers struggled to meet their mortgage repayments, up from 2,215 during 2007. Repossessions hit a peak at the end of September, before easing back slightly but there are now 17,264 Rock borrowers at least three months in arrears - nearly five times as many as the year before.
The figures, for the 12 months to the end of December, were published in the Rock’s annual report. The bank was taken into temporary public ownership just over a year ago and now owes the Government £8.9bn of taxpayers money. It managed to pay off £18bn during the year and reduced the debt from £26.9bn owed at the end of 2007.
Chief executive Gary Hoffman said: “The Government loan has been reduced significantly, and the deposit base of the company has grown as customers have returned to Northern Rock.”
