Northern Rock Seeks Help

One of the UK's leading mortgage lenders, Northern Rock, has applied for emergency support from the Bank of England after being heavily hit by the sub-prime crisis.

The bank has found difficulty in raising funds to finance it's lending during the recent market turmoil.

The UK Treasury has been consulted over the decision for the Bank of England to become "lender of last resort".

Analysists say that there is no reason for customers of Northern Rock to panic as the firm remains profitable and the Bank of England most likely considers the situation temporary.

The sudden news follows, which has shocked many follows large losses by investors in US "sub-prime" loans.

Northern Rock's share price dropped 4.91% today (13th Sept) to 639p.

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