Mortgage lender Northern Rock revealed today that it had agreed emergency funding from the Bank of England after being rocked by the credit crisis in financial markets.The UK’s fifth biggest mortgage lender said its 2007 profits would be more than £100 million lower than expected.

Today’s bombshell brought a mixed reaction from Northern Rock mortgage holders in Shropshire, with some admitting concern while others expressed confidence in the lender.

Karen Wolf, of Telford, who has a fixed rate mortgage with Northern Rock, said: “I am concerned. It will seriously make me think about moving my mortgage elsewhere when the rate comes up for renewal in two years.”

But David Lee-Birch, of Oswestry, who also has a fixed rate mortgage, said he remained confident in the Newcastle-based group.

Northern Rock chief executive, Adam Applegarth, said the Bank of England’s support “reflected a recognition that Northern Rock is solvent”.

But the group’s profits will be between £500 million and £540 million this year – well below the £647 million expected by the market.

The company is heavily reliant on wholesale money markets to raise cash for lending. But its borrowing costs have soared as banks, fearful of potential losses from increasing defaults on higher risk US mortgages, have hiked up lending rates.

Angela Knight, chief executive of the British Bankers’ Association, said: “I think that anybody who is waking up this morning who is either a saver with Northern Rock or has got a mortgage can be absolutely confident that they have got their money with or they have borrowed from a very sound financial institution.”

Mr Applegarth said global markets had forced it to cut 1its lending.

He declined to comment on the size and duration of the Bank’s funding but he warned of more expensive mortgages .

Northern Rock, which has about 6,000 staff, is likely to shed jobs through a recruitment freeze.

By Business Correspondent Neil Thomas