Northern Rock has seen losses incurred from repossessed homes jump by 88% since it was nationalised a year ago, according to new data from its securitisation vehicle.

The state-controlled bank, which is expected to be loss making when it reports 2008 results next month, has seen the stock of repossessed homes spiral in its Granite securitisation vehicle, which funded much of the bank’s ambitious growth in mortgage lending.

The latest data show that losses from repossessed properties dating back to 2001 – when Granite was formed – totalled £5.4m in February 2008.

However, by December Granite’s total losses on repossessed homes had swelled to £45.9m and it incurred losses of £8.6m in December alone from the sale of repossessed properties.

Financial Times