Northern Rock has adopted a two prong strategy to recover from the financial crisis it is facing for the last three months.
London (shakespearefinance) December 11, 2007: Northern Rock, the fifth-largest mortgage bank, has made several changes in its retail products and savings schemes. The bank, while trying to recover from the financial crisis, is hoping to attract more savings from the customers. At the same time, the bank is cutting back on the number of retail product offerings meant for the borrowers.
Northern Rock is trying to bolster its funds by increasing rates across a range of its savings accounts products. The bank has earlier withdrawn unsecured personal loans and many mortgage products from the market. It is working simultaneously on two fronts – tightening the loan conditions and inviting more deposits from the savers.
Lisa Taylor, an analyst at one of the price comparison websites, said: "The increases to Northern Rock's leading savings products -- including taking the top spot in the over-50s best buy charts with its 'silver saver online' -- are a clear sign that it is keen to win back some much-needed savings balance. With so many competitive savings products available, it will be interesting to see if these latest rate rises are sufficient enough to lure savers back to Northern Rock."
The Northern Rock is stepping back a little from the market in a bid to recover and consolidate its financial position. However, it still offers some good products like its buy-to-let fast track guarantee.
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