Partner Article

Rock to reveal latest figures

Inflation data and mortgage arrears figures from Northern Rock will give investors more than just stock market turmoil to cope with this week.

Nationalised North East mortgage lender Northern Rock will report its latest trading figures on Tuesday against the backdrop of a steadily worsening housing market.

During the first half of 2008 - when the Newcastle bank was taken into public ownership - it racked up losses of £585.4m.

Its bad debt provisions stood at £351.8m as 1.18% of its mortgage book slipped to more than three months in arrears at the end of June - more than double the end of 2007.

These arrears are set to rise further as the housing slowdown deepens and higher-quality borrowers desert to other lenders - hitting the standard of its loan book.

But its savings business - in which all deposits are guaranteed by the Government - has proved so popular in the current banking crisis that the Rock was last week forced to withdraw some of its products.

The move is to ensure that it does not have an unfair advantage from state ownership and take in more than 1.5% of the country’s savings balances.

This was posted in Bdaily's Members' News section by Ruth Mitchell .