Northern Rock had up to £30bn of mortgages coming up for renewal this year and customers would be offered help to transfer to other lenders

Liberal Democrat Treasury spokesman Vince Cable branded the payout to Mr Applegarth, who stepped down last December, as a “reward for failure”.
Shareholders and union chiefs want an inquiry but the Prime Minister said the bank’s former board had to take responsibility for its decisions, including the payment to ex-chief executive Adam Applegarth, before the Government took charge after nationalisation.The Financial Services Authority also refused to be drawn on a possible inquiry, saying it was up to shareholders and the board to monitor company bosses.The bank, which is set to cut its workforce by 2,000, sank to a £167.6m loss last year, according to accounts released yesterday.They reveal the board agreed to contribute towards legal costs incurred by directors, including £5,000 plus VAT to Mr Applegarth. He also received enhanced security at his home.
The row came as the Rock’s new executive chairman Ron Sandler unveiled details of an operating plan under which the bank has promised to repay around £24bn in government loans by the end of 2010.The strategy includes the bank halving its balance sheet to £50bn by the end of 2011 by stopping all business lending and accelerating mortgage redemptions for existing customers.
Mr Sandler warned of “significant losses” this year as the credit market turmoil continued, adding that the earliest the bank could become profitable was by the end of 2012.He said Northern Rock had up to £30bn of mortgages coming up for renewal this year and customers would be offered help to transfer to other lenders.
“The chief executive who led the disastrous business strategy is being generously rewarded for failures of leadership whereas shareholders get nothing and large numbers of workers are being made redundant,” said Mr Cable.
Newcastle Central MP Jim Cousins said Mr Applegarth should hand the bulk of the money to the Northern Rock Foundation – but questioned the value of a new inquiry. North Durham Labour MP Kevan Jones urged Mr Applegarth to give up the cash, warning of anger among workers facing job cuts.Hexham MP Peter Atkinson warned against scapegoating one individual, when the blame lay across the financial sector.
Northern Rock said Mr Applegarth’s termination payment was “substantially less” than he was otherwise due.Under the terms of the severance deal, Mr Applegarth’s payment is reduced if he gets another job before November 16. And £75,000 of his mortgage will continue to be charged at the concessionary staff interest rate until November this year.