Northern Rock
| Use attributes for filter ! | |
| Ceased operations | October 12, 2012 |
|---|---|
| Headquarters | Newcastle Upon Tyne |
| United Kingdom | |
| Founded | 1850 |
| Number of locations | 75 |
| Parent organizations | Virgin Money UK |
| Date of Reg. | |
| Date of Upd. | |
| ID | 1355629 |
About Northern Rock
Northern Rock, formerly the Northern Rock Building Society, was a British bank. Based at Regent Centre in Newcastle upon Tyne, United Kingdom, Northern Rock was originally a building society. It demutualised and became Northern Rock bank in 1997, when it floated on the London Stock Exchange with the ticker symbol NRK.
Alistair Darling: Steady hand in an economic crisis
... He was best known for having to nationalise Northern Rock at first, and then effectively the bulk of British banking amid runs on banks by the public and financial markets...
Do Instagram and TikTok mean banks are less safe?
... The dynamics had barely evolved when in 2007, Northern Rock saw runs outside its branches, heralding the start of the 2007-08 global financial crisis...
Call to help 'mortgage prisoners' trapped on high interest rates
... " TrappedSamantha got a mortgage on her two-bedroom terraced house with her ex-husband in 1998, and re-mortgaged with Northern Rock two decades ago...
What is the Bank of England and why is it worried about the economy?
... For example, in 2007 it lent £27bn to Northern Rock, before the government took control during the financial crisis...
The inside story of the Barclays study
... After the rescue of Northern Rock in September 2007, the Treasury dug into the numbers and put the banks on notice...
Mortgage prisoners sue over 'unfair' rates
... Double the cost Many of those affected - usually having taken out mortgages in the late 2000s with Northern Rock or Bradford & Bingley - have been paying more than 5% interest on their mortgages for the past 12 years...
How much could Labour's nationalisation plan cost?
... It did not pay anything to shareholders of Northern Rock in 2008 because it concluded (and the courts agreed) the lender had no value without government support...
Call to help 'mortgage prisoners' trapped on high interest rates
By Tom EspinerBusiness reporter, BBC News
The government made £2. 4bn by selling mortgages from collapsed lenders to investment firms, a report funded by Martin Lewis has suggested.
Some 200,000 mortgages were sold to firms which cannot offer new deals. Many homeowners are stuck on high rates as other lenders will not accept them.
The Founder of the MoneySavingExpert website is calling on the government to free so-called " mortgage prisoners".
The Treasury said it would consider all proposals put forward.
Samantha has been stuck with her mortgage since the 2008 financial crisis. She told The Bbc her payments, which were £546 a month Last Year , are due to rise to £952 next month.
" I spend my whole time panicking, worrying all The Time , " She Said . " I don't sleep most nights. "
Mr Lewis said: " This report lays out starkly that The State sold these borrowers into poverty, knowing it could cause them harm, and made billions doing it.
" The result has destroyed lives. People have been left in financial, physical and mental misery, exacerbated by the pandemic and cost of living crisis ripping through their already dire situations. "
TrappedSamantha got a mortgage on her two-bedroom terraced house with her ex-husband in 1998, and re-mortgaged with Northern Rock two decades ago.
When The Bank collapsed, her loan was one of thousands sold by the government to so-called " closed book" lenders.
These are largely investment firms that are not regulated to offer new mortgages, which means people with loans can't get a cheaper rate through them.
Moving to a different, cheaper mortgage is almost impossible for many because they don't meet strict lending criteria brought in following the crisis.
'Ruining My Life 'Samantha, who works as an office manager in Swindon, has an interest-only mortgage on £150,000.
The Bank of England has been hiking interest rates, but her lender has also been raising rates independently as well, She Said . The rate increased to 8. 14% this month, from 7. 69% last month, She Said .
" I borrow money all The Time off my mum, " Samantha said. " I shouldn't have to be like this just for a mortgage. "
She Said hikes in the cost of living have heaped " massive" pressure on her, to the extent where she can't afford to go to the hairdressers, or to spend even small amounts on presents.
People ask her why she doesn't just sell her home, but she says that would be to lose everything, and she wouldn't be able to get another mortgage.
" It's so hard, " She Said . " It's the bane of My Life . It's ruining My Life . "
'Sold by The State 'The Report , which the website's founder Martin Lewis commissioned from the London School of Economics, puts forward costed solutions to The Problem .
It said the government could offer free financial advice and loans to mortgage prisoners. As a fall-back option, it could guarantee loans from other mortgage lenders.
The Report suggested that measures to solve The Problem would cost between £50m and £347m over 10 Years .
The Treasury said that it had " already taken steps with the Financial Conduct Authority [FCA] to update mortgage lending rules, removing The Barrier that prevented some mortgage prisoners from being able to switch".
" We Are open to further practical and proportionate solutions to help mortgage prisoners, working with the FCA and industry to carefully consider all proposals put forward, " a spokesperson said.
The FCA said: " We recognise the difficult circumstances faced by affected mortgage borrowers, who cannot switch and could benefit from doing so.
" We removed regulatory barriers to switching and set clear expectations for firms to support borrowers in financial difficulty and The Fair treatment of vulnerable customers, " it said.
Related TopicsSource of news: bbc.com
