As you may be aware, we have been planning to restructure Northern Rock to build a stronger future and deliver value to the UK taxpayer. Our plans have been approved by the European Commission, the Financial Services Authority and the Government and - with effect from 1 January 2010 - Northern Rock was restructured into two separate companies:

• Northern Rock plc is a new well-capitalised bank that will hold and service all customer savings accounts and some existing mortgage accounts, as well as offering new mortgage and savings products to new and existing customers.
• Northern Rock (Asset Management) plc is the existing company that has been renamed. This company is also well-capitalised and holds and services the majority of existing mortgage and unsecured loan accounts. It does not offer any new products or provide the option of additional borrowing to its existing customers.

Both companies remain in Government ownership and are authorised and regulated by the Financial Services Authority.

Customers do not need to take any action. We have written to all customers confirming which company holds their account.