The Government has told Northern Rock it should no longer attempt to get rid of mortgage lenders, as part of its latest package of measures to support banks and help borrowers.
In a statement issued this morning, the lender said its policy since March last year of actively encouraging existing customers to remortgage to other lenders when their fixed rate product deal ends had been very effective, and had enabled Northern Rock to reduce its Government loan ahead of its business plan. However, with the Government now supporting increased mortgage lending, the firm reveals it would be slowing down the rate of mortgage redemptions. In a statement it says: "This means that more mortgage customers will be able to stay with Northern Rock. A reduced level of redemption...
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