Northern Rock celebrates profit rise in 2006

Northern Rock is by far one of the biggest loan companies within the UK. Thousands of people take on mortgages and other loans from the company each year and in 2006 profits were said to be up by 31%. This is mainly due to the fact that the company has started to offer more services for its existing customers.

Everybody knows that new clients are important but if you do not look after your existing ones you could lose potentially a lot of business. Northern Rock knows this and last year they advertised with mainly their existing customers in mind. Their services allowed existing customers to expand their current lending amount if they were moving or re-arranging their finances. Many people did re-arrange their finances in 2006 in order to keep up with the rising property prices so they benefited from this service which was offered. 

The reason Northern Rock focuses a lot of time on mortgages is because those are the lowest risk loans to lend. After all, if customers miss regular monthly repayments they can have their home repossessed. So, mortgages are a top priority to them and their customers are benefiting from this by the extra services offered.

However, with price rises expected on mortgages again in 2007, Northern Rock is more than likely going to raise its prices to meet with competition such as The Bank of England. Also, it is going to be clamping down on bad debt as the UK recorded that bad debt was the worst it has ever been in 2006. Unless banks do start clamping down on this debt, the problem will only get worse.

So, if you are thinking of taking out a mortgage, then Northern Rock may be you best choice. As well as offering deals for their new customers, they also look after their old ones. What more could a customer want?