Northern Rock has admitted that its customers are finding it more difficult to keep up with monthly repayments on their home loans .
The mortgage lender revealed that the number of homeowners in arrears on their loans has nearly doubled since February.
The news of a surge in arrears from 0.57 per cent to 0.95 per cent comes despite earlier boasts from the company that arrears were well below the industry average.
It also emerged that the bank was struggling to boost savings, which had stood at around £25 billion prior to its financial crisis last year.
A trading update by the bank also revealed that modest progress in improving retail savings had been made, with balances ending the quarter at £12.8 billion.
Northern Rock has encouraged customers to redeem their mortgage in order to help reduce the size of its mortgage lending by 50 per cent from a peak of £100 billion as part of its recovery strategy.
The bank explained that progress was being made in the mortgage redemption area, "with redemption levels in the first four months of 2008 in line with the plan" .
However, there are fears that development could suffer a set back by instability in the UK market . The company further explained that tough economic and market conditions, in addition to a shrinking mortgage book, have all contributed to a rise in arrears levels.
Northern Rock Reveal Home Loan Worries
Northern Rock Reveal Home Loan Worries
Wed, 14 May 2008
Recommended links
Your online loans resourceHome loans
UK Mortgages portal
Loans comparison tool
Northern Rock loans
Homeowners Continue To Face Loan Repayments Hardship
Interest Rates On Home Loans Hit 7-Year High
UK Homeowners Advised To Stick With Fixed Rate Loans
| Online Loans news |
|---|
| Buy To Let Loan Approvals Declining - Wed, 27 Aug 2008 |
| Over 3 Million Borrowers Refused Credit - Fri, 22 Aug 2008 |
| Loan Interest Rates On The Rise - Wed, 20 Aug 2008 |
| More News |