The Guardian has been going through the Northern Rocks books, and what's been uncovered casts serious doubt on the bank's ability to survive and the security of tax-payers' money. It appears that 70% of its mortgage portfolio is owned by a Jersey trust. What's more, the details of Northern Rock's lending is an eye-opener... loans on 90% or more of property value soaring from £2.7bn to £16bn in three years... 2,500 mortgages in which loans exceed property value. The bank is highly vulnerable to a slide in property prices. All in all, sobering reading.

Technorati Tags: property, real estate