Falling mortgage business blamed for Rock job cuts
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Northern Rock says a fall in mortgage business is one of the reasons behind its decision to shed 650 jobs.
The lender plans to cut 650 jobs by the end of the year as part of a wider restructuring plans. It says it is currently writing a fifth of the mortgage business it did at its peak.
Northern Rock lent £4.2bn in gross lending in 2009, including new residential lending of £3.1bn and retention lending of £1.1bn.
Last February the lender changed its business plan from focussing on redeeming mortgages and paying back its government loan to slowing the rate of redemptions.
The legal and capital restructuring of the former Northern Rock business was completed in January 2010, creating two companies - Northern Rock plc and Northern Rock (Asset Management) plc.
The firm says the next phase in restructuring Northern Rock plc for a return to the private sector involves aligning the number of employees with the smaller size of the business.
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