View more on these topics

Northern Rock could become a mutual again

labour.gif

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.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com