Northern Rock could be remutualised if Labour retains power.
The manifesto says turning Northern Rock back into a building society is the preferred plan. It says: “As one option for the disposal of Northern Rock, we will encourage a mutual solution while ensuring that the sale generates maximum value for money for the taxpayer.”
Building Societies Association head of mortgage policy Paul Broadhead says: “It is something that we have called for, so it is a welcome step in the right direction. We are happy to work with them to work towards a suitable model that gets taxpayers the best bang for their buck.”
But London & Country head of communications David Hollingworth believes the move may prove difficult. He says: “Remutualising means, effectively, giving it to accountholders. How it is going to raise funds to give a return on taxpayers’ investment is going to be the big question.”