080506THE NORTHERN ROCK BANK.docVIP

Northern rock bank background introduction (1)northern rock bank history Northern Rock Building Society was formed in 1965 as a result of the merger of Northern Counties Permanent Building Society (established in 1850) and Rock Building Society (established in 1865).Building societies resist carpetbaggers. Retrieved on 2008-02-20.? During the 30 years that followed, Northern Rock expanded by acquiring 53 smaller building societies, most notably the North of England Building Society in 1994. Along with many other UK building societies in the 1990s, Northern Rock chose to demutualise and float on the stock exchange in order to better expand their business. Throughout this period a concern against demutualisation was that the assets of a mutual society was built up by its members throughout its history not just the present members who would benefit, and that demutualisation was a betrayal of the community that the societies were created to serve.2.House of Commons Hansard Debates for 17 Mar 1997 (pt 17) (2008). Retrieved on 2008-02-20 Northern Rock chose to address these concerns by founding the Northern Rock Foundation. (2)northern rock bank main business Northern Rock is one of the top five mortgage lenders in the United Kingdom in terms of gross lending.As well as mortgages, the bank also deals with savings accounts, current accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The unsecured loans business is administered and underwritten by Ventura based in Leeds. Home and contents insurance is dealt with by AXA whilst Legal General, whose mortgage book Northern Rock took over, arrange insurance and stock-market-based investments. Payment Protection Insurance (PPI) can be arranged with London-based Cardif Pinnacle. In 2003, to free capital for its rapid growth in mortgage lending, the bank sold its credit card business to The Co-operative Bank for a profit of more than ￡7 million. Until November 2007 Norther