Northern Rock repossession losses hit £45.9m

Northern Rock has suffered losses of £45.9m since 2001 as a result of having to repossess property on its books.

Data from the nationalised lender’s securitisation vehicle Granite shows that in December alone the figure for repossession losses came in at £8.7m.

This amounts to an average loss per property of £ 19,348.

Of the properties that Northern Rock has not repossessed, some 6.3% of borrowers are behind with mortgage payments by at least a month.

The figures also reveal that 3,719 mortgage loans under Granite are now worth less than what was originally loaned out by Northern Rock.

It means that 1.33% of borrowers with assets under the Granite trust were in negative equity as at December last year.

The Granite securitisation vehicle does not represent all of Northern Rock’s mortgage book, but does give a clear indication of the scale of losses the nationalised lender is now facing.