moneysupermarket.com: Northern Rock's new business plan

Commenting on Northern Rock's new business plan, Kevin Mountford, head of savings at price comparison site moneysupermarket.com, said: "Northern Rock has clearly put together a plan with two aims – to turn a healthy profit again and to get its unfair savings advantage over its rivals approved by regulators in the EU.

"Northern Rock's proposed model of a leaner mortgage book and greater savings is a successful formula, similar to many medium-sized providers in the UK.

"But having the full Government guarantee behind it does give Northern Rock a competitive advantage.

"It has tried to get around this by stating it hopes the guarantee will not be required some time in the future. But whether or not this convinces the European Union is another matter.

"Certainly the guarantee and Northern Rock's change in emphasis towards deposits mean it is a very good savings proposition right now."