Northern Rock has made a loss of £724.2m in the first half of the year due to a rise in arrears and writedowns.
This compared to a £585.4m loss over the same period in 2008. Impairment charges on bad loans rose to £602.2m in the first half of the year from £191.6m at the end of 2008 and Northern Rock expects a similar figure for the second half of the year. Its half year results also reveal its mortgages in arrears, including its 125% loan to value Together mortgages, rose to 3.92% by 30 June compared with the Council of Mortgage Lenders members' average of 2.4%. Arrears have now risen from 3.67% at 31 March 2009 and 2.92% at 31 December 2008. However, excluding its Together loans, residen...
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