Northern Rock Defies Brown to Raise Mortgage Rates

Northern Rock and HSBC defied orders from the Government and the Bank of England yesterday by making their mortgages even more expensive for new customers.
Both banks put up their mortgage rates by up to 0.65 points yesterday, three weeks after the 1.5 point interest rate cut, and just 24 hours after the Bank of England said getting banks to lend to families and firms is ‘the single most pressing challenge’ facing the country.
Governor Mervyn King had also warned that nationalisation of the entire banking system would not be ruled out if lending does not pick up.

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