The Government has reached a mortgage market crossroads, with Northern Rock at risk as a result of its plan to offer more mortgage products, Datamonitor warns.
The firm says, while making Northern Rock offer new mortgage products seems like a good idea, it could lead to considerable problems for the troubled lender. Today, the nationalised bank revealed it has made a £1.4bn loss during 2008 as home repossessions rose by 63%. Robert Mattai, retail banking analyst at Datamonitor, says as certain lenders, including Lloyds Banking Group, face significant losses, the Government was trying to help improve their loan portfolios by increasing market liquidity through the new Northern Rock initiative, which will see the state-owned lender commit £14bn ...
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