Northern Rock nationalisation: Newcastle Building Society comment

Wendy Lee, Commercial Director at Newcastle Building Society, comments on the decision to nationalise Northern Rock:

"The decision to nationalise Northern Rock, whether the right one or not, at least gives a conclusion to the situation after five months of uncertainty.

"For borrowers, the key indication is that mortgage deals may not be as good as would have previously been expected of Northern Rock.

So for customers currently re-mortgaging, we would urge them to carefully examine what is being offered and to read the small print - as there may be more competitive products elsewhere.

"As a large employer in the North East, Northern Rock's situation has been a worry for many in the region.

The announcement that the bank will contract the business to a sustainable size indicates that there could well be job losses, in addition to the loss of funds that Northern Rock previously offered to the community through its charitable foundation.

"It's not all bad news for employment in the North East however.

Newcastle Building Society announced last year that it has committed to creating an additional 500 jobs by 2012 as part of our continued growth strategy, which includes expanding into a new building at Cobalt Business Park.".

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