Wednesday, 20 February 2008

Could the Alliance & Leicester be next?

Analysts are concerned that the Alliance & Leicester could be the next major bank to follow in the Northern Rock crisis.

The A&L is expected to try to protect itself by reducing the value of mortgages on it's book. It has already dropped it's 125% mortgage and it may increase mortgage rates to force some borrowers to move elsewhere.

Analysts are particularly worried about the Alliance & Leicester because it relies on raising money from global money markets.

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