Northern Rock borrowers being affected by repossession

According to a recent report there a large proportion of homeowners that have had their properties repossessed are Northern Rock borrowers. It has been estimated that around one in every thirteen homeowners that has been repossessed has been a Northern Rock borrower.

Officials from Standard and Poor carried out a recent survey and this suggested that many Northern Rock customers were running into financial problems more frequently than other borrowers on the mortgage market. The results showed that in the second quarter of the year around 353 Northern Rock borrowers with prime mortgages faced repossession.

For the first quarter of the year there were just 134 prime mortgage customers with Northern Rock that were facing repossession, so the rise for the second quarter was quite a significant one. There has also been a rise in the number of people that have fallen behind on their mortgages by three months or more according to the survey results.

It is thought that these issues could actually result in taxpayers now having to pay more for the Northern Rock bailout by the government. The troubled bank was taken over by the government and nationalised earlier this year after becoming one of the first major victims of the global credit crunch in the UK last summer.