Depression in the property market and stagnation in housing prices have failed to deter Northern Rock, as it reported an optimistic trading update, saying that its profit forecast matched with expectations, and its credit status was also quite strong.
Mortgage lender, Northern Rock, actually stood by its name, much like a rock against the economic gloom emanating from the downturn in the property market and stated that it had witnessed good borrowing tendencies in the first six months of the year as well as in the third quarter. The amount of lending recorded over nine months was 17% up as compared to last year.
The mortgage bank said that it had bridled its costs pretty well and its annual profits would thereby coincide with City hopes and range between £468m to £509m.
Northern Rock head, chief executive Adam Applegarth commented, “The robustness of our business model means we are again set to deliver on all our strategic targets in 2005 and we remain confident on the prospects for 2006.”
Moreover, the bank had lower levels of arrears in its registers opposed to other lenders whose bad debts only seemed to rise. It had already invested about £36m on maintenance of infrastructure in the half year to 30 September, and planned to spend double the amount in the next six months of the financial year to step up its facilities and features.
Northern Rock confidently stated that the scenario in the property market was not troubling as it only indicated the return of first-time buyers into the market.
Posted
on : Tue, 04 Oct 2005 16:15 GMT | Mortgages News
By : Mike Lawson
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