Mortgage News Northern Rock Denies Aggressive Stance On Repossessions For Mortgage Customers 2378

Northern Rock denies aggressive stance on repossessions for mortgage customers

20 October 2008 / by Rachael Stiles
Northern Rock insists it is not acting more aggressively than other banks in light of accusations that the nationalised bank has a repossession average three and a half times higher than the industry average.

Channel 4 has reported that, according to figures it received from the housing charity Shelter, Northern Rock is repossessing the homes of three and a half times more of its mortgage customers than its competitors are – according to the charity’s figures, Northern Rock’s repossessions account for 0.56 per cent of its mortgage book, compared to the industry average of just 0.16 per cent.

However, the bank’s chairman Ron Sandler refutes “any suggestion that our position has been anything other than commercial and consistent with the way this bank has operated in the past.” He “strenuously” denies that Northern Rock has been “overly aggressive.”

He added that repossession remains a last resort for the bank, and that it is “encouraging customers who are struggling to maintain their mortgage payments to seek independent financial advice”.

Written by Editorial Team