Money News
5th August 2008
More Northern Rock customers defaulting on mortgages
The number of Northern Rock customers falling into arrears increased dramatically during the first half of the year, in the latest sign that the soaring cost of living is impacting on borrowers' ability to make mortgage repayments.
In its latest trading report the North East-based lender has announced that the proportion of its mortgage customers who have slipped into arrears on their home loan grew to 1.18 per cent.
By way of comparison, 12 months ago this had stood at just 0.38 per cent.
The increase is thought to be down to higher energy, food and fuel bills being faced by consumers which have significantly impacted on their ability to pay their mortgage debt.
Northern Rock has also confirmed that it recorded a loss of £585.4 million for the first half, with charges taken to cover defaulting customers identified as the principal factor for its performance.
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