Northern Rock sees big jump in defaulters (RTE)

04 November 2011

Northern Rock today announced losses of £585.4m sterling for the first half of this year as the number of customers falling behind with mortgage payments jumped sharply.

The recently-nationalised lender said its bad debts provision stood at £351.8m as 1.18% of its mortgage book slipped to more than three months in arrears at June 30 - this was more than double the amount at the end of 2007.

But the former bank said it had managed to repay £9.4 billion of the Bank of England loans, taking the amount owed at the end of June down to £17.5 billion.

'The external environment has deteriorated and the consequences of this for Northern Rock are increased credit losses,' the bank's executive chairman Ron Sandler said

The UK bank was nationalised in February after the credit crisis forced it to seek emergency funding from the Bank of England last autumn.