Northern Rock will be split in two as part of a restructure, the Treasury has confirmed.
The restructure will take effect from 1 January and the bank will be split into two separate companies. Northern Rock plc will be a savings and mortgage bank that will offer new savings accounts and lend new mortgages, as well as service all existing customer savings accounts. Northern Rock (Asset Management) plc will hold and service the majority of the existing mortgages (worth around £50bn), all unsecured loan accounts, the Government loan and the Company's outstanding wholesale funding and subordinated debt as at the Transfer Date. The majority of mortgage accounts will remain ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes