The sell-off of Northern Rock, which looks set to occur following acceptance of restructuring plans by the European Commission, has been applauded as being “good for consumers”.
So the head of personal finance at lovemoney.com Ed Bowsher has said, observing that the building society “has actually been offering some very good deals to consumers” and is currently featuring “some of the best mortgages on the market”.
He went on to suggest that it stands to be “quite competitive” and have “a strong balance sheet”, unlike some other financial institutions, a fact that stands to benefit debtors as good deals may be set out.
Mr Bowsher added that more competition in the market is needed “very desperately” and he welcomed the emergence of a new – and strong – player in the sector.
Under the government’s plans concerning Northern Rock, the establishment is to be divided into a good bank, continuing its economic activities – and a bad one, launched as an asset management company.
By Sarah Adie