The troubled bank's first accounts since it was nationalised were considerably worse than had been estimated, with many experts fearing mortgages will be even more difficult to get.

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Up to a fifth of its mortgage customers, many in its North East heartland, could be in negative equity – owing more than their home is worth – in the next 18 months.

And the company today also announced it is getting an extra £3billion cash injection of tax payers cash from the Governent to help its restructuring.

The accounts showed that residential arrears of more than three months have more than doubled since the start of the year.

And with repayments and household bills rising, increasing numbers of families in the region face having their properties repossessed by the Government.

Particularly vulnerable are people who recently took up the Rock's flagship Together product, which included a loan on top of the mortgage.

Keith Hunter, from Sunderland-based Assured Mortgages, said: "At the minute, Northern Rock are telling people to go elsewhere for their mortgages. But that does not mean it's going to be easy to find another offer with a different lender."

Broker David Hollingsworth, of London & County, said: "When customers come to the end of their deal, they will get switched to the standard variable rate of 7.49per cent, which will mean a leap in the interest they pay."

Northern Rock's half-year trading figures showed loans and advances to customers reduced by £14.5million, as the lender seeks to streamline its business, with the number of mortgage accounts falling from 777,000 to 662,000.

The organisation – which employs 1,200 staff at Sunderland's Doxford International Business Park – has revealed that 1,300 people will be made redundant.

Today's accounts showed the Rock has repaid £9.4billion of its £26.9 billion loan form the Bank of England, which chairman Ron Sandler said was "considerably ahead of plan."

Dennis Grainger, a former Rock worker who is leading a shareholders legal battle for compensation, said that people in the North East were suffering unjustly over the whole saga.

"Some staff who will lose their jobs, probably had mortgages there and were part of the share scheme, so they have lost out three times over," he said.