Sub-prime rates rise 1.25% for Northern Rock

Northern Rock also confirmed the withdrawal of all sub-prime tracker mortgages until further notice. Both changes will take effect from 29 August. A spokesperson for Northern Rock says: “We will be increasing sub-prime rates across the board with some products rising by 1.25%. However, the changes won’t take place until next week so we’re giving customers time to submit applications for the lower rate.” Northern Rock has some exposure to US CDOs and mortgage-backed securities, which have come into financial trouble due to rising world interest rates, but says these represent just 0.24...