Northern Rock cuts its repossession numbers

The nationalized mortgage lender Northern Rock has recently announced that it has managed to cut its mortgage repossession numbers as a result of the housing boom seen over the summer period. The bank has also seen stabilisation of the number of mortgage customers on its books that are in arrears with their mortgage repayments.

Before releasing its figures the lender said that it expected to see the number of repossessed homes that were on its books fall by around 50 percent compared to last year, falling to around two thousand.

Another factor that has helped repossession numbers for Northern Rock to come down compared to last year is the fact that, like some other banks, it is now using repossession as a last resort rather than taking repossession action as early on as possible, and this has helped give homeowners and the lender time to reach a mutually effective solution.

The banks said that it was expecting the increase in the number of customers that were in mortgage arrears to be only a slight one, which would indicate that there were signs of stabilisation.

In the meantime the European Union has said that Northern Rock can be split into two businesses, which will mean that part of it can be privatized again. By the end of this year the bank is expected to owe around £27 billion to the taxpayer, and it is likely that it could take another decade or so to repay this huge debt.

There are concerns over when the split may take place, and Vince Cable from the Liberal Democrats said: ‘The Government should resist the temptation to use Northern Rock for its own political ends by selling it off before the General Election. It should only be sold when market conditions are right and the taxpayer gets a good return on their investment.’