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In a "formalisation" of its policy the lender confirmed its existing debt management process involved working with each customer who is facing repayment difficulties to try and agree an alternative debt management solution before taking repossession of their property as a last resort.

Northern Rock said that where it had worked with the customer, on average, repossession did not occur for a period of 15 months from when the mortgage first fell into arrears.

Less than 1 per cent of repossession cases currently involved Northern Rock working with customers for a period of less than six months from the point they first fell into arrears, according to the lender.

Gary Hoffman, chief executive of Northern Rock, said: "We continue to work with customers facing repayment difficulties to try and agree an acceptable debt management solution and avoid repossession.

"In the vast majority of cases, where repossession regrettably does take place, we have been working with the customer for well over six months.

"We will now formalise our policy and agree not to repossess a property for a period of at least six months from the point of arrears."