UK's OFT issues Northern Rock report

British taxpayer support for mortgage lender Northern Rock did not have a “significantly adverse impact” on competition in the past year, the UK's Office of Fair Trading (OFT) said today.

The nationalised lender has been bound by a framework limiting its share of savings, as well as unwinding its mortgage book to repay the billions owed to the taxpayer.

But the watchdog’s report was compiled before a change of strategy announced last month which will see the Rock lend up to £14bn (€15.2bn) over the next two years to ease the drought in mortgage financing.

The OFT said it will continue to monitor developments in mortgage and savings markets to identify “any emerging competition concerns”.