The bank Northern Rock will stop offering sub-prime mortgages in the first of a predicted sequence of pull-backs ordered by the new “owners” at the Treasury.
Ron Sandler, Northern Rock’s new boss, is likely to introduce further measures in order to repay the £25bn emergency loan such as cutting down jobs and reduce the over £100bn lender’s mortgage book. He has already set very uncompetitive levels for Northern Rock’s mortgage rates to reduce new business.
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