Mortgage misery.

Investors Chronicle - magazine and web content, June, 2007

Northern Rock says its margins will be squeezed by rising interest rate expectations, while housebuilders George Wimpey and Taylor Woodrow are feeling the pain in the US. Plus the rest of today's news and results Jonathan Eley

Northern Rocksaid it expects underlying attributable profits to rise 15 per cent in 2007, compared to the 17 per cent implied by the median of analysts' consensus forecasts. It said further rises in interest rate expectations have created a structural mismatch between Libor-denominated loans (its funding) and base-rate denominated loans (its lending) which will squeeze margins.