Northern Rock need to shake off high risk customers in order to pay back BOE

Northern Rock need to shake off high risk customers in order to pay back BOE



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Figures from Northern Rock have revealed that since it became Government owned the number of people behind on their repayments has risen sharply.

 The Rock had planned to pay back the government loan by 2010 but this will now depend on whether high risk borrowers can be persuaded to take their business elsewhere. Many of the deals taken out in the credit boom were as high as 125% of property value, so the fear is that other lenders will not be keen to take these customers on. If this is the case, Northern Rock will not be able to keep up with their repayment plans to the Government, and the customers left will be at a high risk of repossession.

 A trading statement issued by the bank said: 'This environment presents Northern Rock with challenges, especially as regards the company's ability to meet its targeted mortgage redemption levels in the future.'

Lucy Trueick
 

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