Core Business

Northern Rock is a mortgage and savings bank, lending to customers in the UK.

Its distribution network consists of over 70 branches plus postal, telephone and Internet operations. The majority of new residential mortgage business is sourced through the UK financial intermediary market.

Northern Rock has introduced a Competitive Framework to ensure that the company does not take unfair advantage of Government support.

Retail Savings

Northern Rock intends to grow the retail deposit book and retail deposits will represent a greater proportion of total funding going forward.

The Company has a savings pledge in place for its retail savings customers. Northern Rock will write to its savers every time it makes changes to interest rates on their account. If the account is a notice account and rates are to be reduced, the advance notice will be at least the same as the notice period.

Northern Rock will notify its savers of any new variable rate product it launches which is of a similar type to that already held by them.

Northern Rock will write to its savers if it changes terms and conditions on their accounts.

Residential Mortgage Lending

Residential lending represents Northern Rock's core activity.

The Group's residential mortgage assets are spread geographically throughout the UK and are focused on customers with a sound credit history.

For more information visit the Mortgages section.

Insurance Products

Northern Rock distributes a limited range of household insurance and payment protection products primarily to residential mortgage customers, via third party providers. Life assurance products are supplied to Northern Rock's customers through a relationship with Legal & General.