Government may force Northern Rock to issue more mortgages

Northern Rock the lender that was fully Nationalized last year by the British Government may have to boost the number of mortgages it issues, as rival lenders withdraw their finance facilities, according to a report.

Northern Rock has been in the process of reducing its mortgage book until now to repay taxpayers money. But according to the report in the Daily Mail, the government may well reverse its policy and an attempt to jump-start the ailing economy.

The report also suggests that Northern Rock have been rejecting applications and refusing to renew mortgages for existing customers.

However it’s been noted in related reports that homeowners with existing Northern Rock mortgages feel that the Prime Minister should step in and stop the government owned bank charging penalty interest rates on over 200,000 borrowers who cannot afford to go elsewhere for their mortgage.

Source: introducertoday

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