Taxpayer bill for Rock to rise

<div>The Treasury&rsquo;s bill for Northern Rock&rsquo;s losses looks set to increase, after one of the mortgage lender&rsquo;s subsidiaries breached a contract, putting other creditors ahead of the taxpayer for repayment. Granite, a unit which securitised Northern Rock mortgages, will be forced to speed up the return of &pound;26bn of debts to noteholders. Rock will be left more exposed to Granite as noteholders are paid back and exit their stakes. Granite is losing about &pound;12m a month due to loan defaults, delays and repossessed houses being sold below their value.</div>