Qualified advisers answering your
Financial Questions
call 0800 092 1245

How has the Northern Rock gone so badly wrong?

The announcement that Northern Rock is to cease payment of interest, where possible, on a number of the company's bonds and the confirmation that the UK government will be injecting a further £3 billion into the operation, which will be reorganised, has caused fury up and down the country. When the business was taken over, using taxpayers money, the government promised a return on investment in the short to medium term and while initially the business was paying back part of the loan on an ongoing basis, over recent months the government has been forced to inject more money into the operation.

Such is the dire situation in some areas of the Northern Rock that the government is currently putting together a plan to hive off the current mortgage book, which has significant debt issues, from the branches, deposits and future mortgage business. It is also widely known within the city that the UK government is looking to sell off Northern Rock as soon as possible with the likelihood that UK taxpayers will receive only a fraction of the money they have invested so far.

If the situation with Northern Rock can go so wrong, can we expect Lloyds bank and Royal Bank of Scotland, both companies in which UK taxpayers have a significant stake, to request further funding from the taxpayer?

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details