MORTGAGE bank Northern Rock hit new heights in the first half of the year, despite the slowing housing market.

The former building society saw remortgaging jump 11 per cent to a record £3.9bn.

The company's growth led to more than 300 jobs being created in the first six months, 289 of which were in the North-East.

Since becoming a bank in 1997, the firm has increased its staff from 2,600 to more than 4,200.

Northern Rock's success has also brought rewards for long-standing customers.

Anyone with savings of £50 or more in 1997, was given 500 shares which are now worth £3,500.

The interim dividend announced yesterday was worth £37.50 to those who kept those shares, taking the total earned since 1997 to £464.50.

The group said the future remains positive, despite concerns that the housing market may yet slump.

The company's policy of allowing customers to transfer to any product available to new borrowers meant more customers were staying with Northern Rock when remortgaging their homes.

The Newcastle bank said pre-tax profits jumped to £186.2m in the six months to June 30, from £152.6m in the same period last year.