Northern Rock Applies For Loan

So it’s not just us poor consumers that have to apply to borrow money to help us out of sticky situations, it appears that Northern Rock, one of the UK’s top mortgage lenders has had to ask the Bank of England nicely for an ‘emergency loan’ to tide them over.

Apparently this doesn’t mean they are likely to go bust, they just seem to be having a cash flow problem, despite turning profits of approximately £296 million in 2006, however this loan will certainly reduce profits for 2008.

This is all seems to be due to the sub-prime mortgage crisis in the US that appears to be hitting other parts of the world.

Read the BBC News article here