The vehicle that funded Northern Rock’s ambitious expansion of mortgage lending has been cut loose by the state-run bank – a move that represents a shift in the wider world of mortgage finance.

The bank, advised by Credit Suisse, decided to let Granite, its £35.5bn securitisation programme or master trust, go into run-off, meaning that Northern Rock will no longer supply it with fresh mortgages and bondholders will be repaid as old mortgages expire.