The question over its future was raised by a Mortgage Introducer source, who claimed that following the recent nationalisation by the government, Northern Rock could be forced to reveal and sell off its external business interests, including its stake in the sourcing system.
In a statement announcing the nationalisation, Northern Rock stated that the government had taken ‘the company into temporary public ownership by legislation under which it will acquire all of the shares in the company, including the preference shares.
'The company understands that the listing and trading of the debt instruments of the company and its financing vehicles remain unaffected’.
John Watson, operational director at Northern Rock, claimed that the bank’s relationship with Mortgage Brain was ‘business as usual and there are no plans to change anything’.
Mark Lofthouse, chief executive officer of Mortgage Brain, admitted that Northern Rock owned a sixth of the sourcing system.
He commented: “It is one of the six majority shareholders of Mortgage Brain but there is nothing in our articles or term to force it to do anything with its shares now that it has been nationalised.”
Lofthouse added that, despite the bank’s nationalisation by the government, the lender could continue its share option.
He explained: “It is the same as a shareholder with HBOS, for example. Shareholder rights are what they are and there is no obligation for Northern Rock to pull out.”
