Rock parcels up loans again

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Northern Rock is going back into the securitisation market for up to £370m of funding three years after its reliance on packaging mortgages as bonds drove it into state ownership.

The securitisation will be the first by Northern Rock's "good bank" after the lender was split in two last year.

Tapping into new sources of funding is a further sign that the bank is preparing for a return to the private sector after it appointed advisers.

Northern Rock relied on securitisation for £49bn of funding through its Granite vehicle in 2007 when the market for securitised assets froze.

Ron Sandler, the chairman, said this month that he was looking for alternative funding sources to retail deposits.