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Northern Rock to advise homeowners to cut back
Business digest: Nationalised bank identifies high-risk borrowers who should cut back on spending
UK Asset Resolution, the holding company that now represents nationalised banks Bradford & Bingley and Northern Rock, is to tell around 30,000 high-risk borrowers that they risk getting behind on their mortgage repayments unless they cut back spending on things such as Sky TV and mobile phones.
The unprecedented warning to customers whose mortgages were approved long ago comes ahead of an expected interest rate rise next year.
Richard Banks, the UKAR chief executive and a former director of Alliance & Leicester, said: "Some people won't cope when interest rates rise, but for others there are remedies. They need to think about what is their most important debt."
UKAR will offer advice to the customers it rings up on how to deal with their finances should rates rise, and could also carry out credit checks, although only with their permission.
Read a full report at the Daily Telegraph. ·
