Apparently Northern Rock branches have been inundated with customers withdrawing money from their accounts? The reason is that they had to apply to the Bank of England for an emergency loan. Although the bank allegedly has enough financing to honour all customer’s requests, the situation came about after two major banks withdrew from separate negotiations to buy Northern Rock.
So why am I posting about this? Although I do not have a bank account with them, our mortgage is through the company, so I need to try and find out what would occur if the worst should happen and the bank goes under.
If anyone from the UK has professional knowledge of these matters, I’d appreciate it if you could make contact, either through the comments section below, or via the Contact page. I’m not looking for anything binding obviously, I just don’t know what happens to mortgages if the provider goes under - will the payments we have made already disappear, if a new company takes on the mortgage, are they at all obliged to keep to the original terms and conditions etc?