Bloomberg.com: Northern Rock Pulls Out of Subprime Mortgage Market in U.K.

March 10 (Bloomberg) — Northern Rock Plc, nationalized by the U.K. government last month, will stop selling subprime mortgages in Britain.

The bank will stop selling the loans today, though applications submitted before will be processed, the Newcastle, England-based lender said in a statement today.

Northern Rock, bailed out by the Bank of England after it ran out of funds for new loans in September, began selling subprime and “near prime” home loans last year on behalf of Southern Pacific Mortgage Ltd., which was responsible for funding the loans and managing the repayments, it said.

Bloomberg.com: U.K. & Ireland
Northern Rock Pulls Out of Subprime Mortgage Market in U.K.