One of the leading financial institutions in the UK and the country's 5th largest mortgage lender, Northern Rock Building Society was formed in 1965 with a merger between Northern Counties Building Society (operating since 1850) and Rock Building Society (operating since in 1865). Following that the company had a strategy of aggressive acquisitions and evolved into a dominant figure in the North East. In 1997 the company dropped the mutual status and converted into a public limited company whose shares are trading on the London Stock Exchange. The Society is regulated by the Financial Services Authority.



Northern Rock is a specialized lender that serves primarily the residential mortgage market in the UK. Also offered are personal unsecured and secured loans. The company's competitive edge is its cost efficiency which allows it to offer their products at a discount to competition. The products can be researched, inquired and purchased at any of the 70 branches as well as by telephone and internet. The core mortgage business is offered at a retail and wholesale level, with wholesale mortgages being distributed through a large network of intermediaries. On retail level, traditional mortgages are still in high demand while new products are also gaining in popularity. Those include: debt bundling products with a ?together? program and equity release with ?Lifetime Mortgage?.

Northern Rock Group is also involved in commercial secured lending for the purpose of individual or corporate investment in in properties for residential, retail, office or industrial use.

The commercial loan portfolio diversifies company's assets, lowers risk profile while contributing to the interest revenue for the Group.

Personal Loans is another important segment of the Group's operations. Both secured and unsecured loans are available. Unsecured loans, of course, are a subject of a more rigorous credit check and are available from ?1,000 to ? 25,000 with a fixed interest rate. Secured Personal Loans are offered to the Northern Rock mortgage customers only. Secured loans are available in the amounts greater than ?3,000 and are offered to the customers that have equity tied up in the property and want to release the cash for home improvement, major purchase or other purposes.

To customers looking for savings products Northern Rock offers industry competitive line up of saving, bond, guaranteed investment and other fixed income accounts. Telephone and internet banking is highly efficient in tandem with the firm's overall strategy of providing low cost products. These additional lending and savings products are a solid contributor to the firm's revenue. However, Northern Rock's core business is residential mortgage lending accounting for 90% of all of its lending assets and a main revenue and profit driver for the firm.