Sept. 15 (Bloomberg) -- Northern Rock Plc branches around the U.K. had lines of customers stretching outside their doors seeking to withdraw deposits for a second day after the Bank of England authorized emergency funding to the mortgage lender.

A line extended about 40 meters (120 feet) from the Golders Green branch in north London today, where as many as four police officers helped keep order. Clients also stood outside outlets in Kingston and Sheffield in England and Edinburgh in Scotland, images broadcast by television networks showed.

``I have been saving for years, and I don't want to lose it,'' said Jacqueline Porte, who had advanced 25 feet toward the entrance to the Golders Green branch in three hours. ``I don't want to be with a bank that hasn't been careful.''

Customers withdrew 1 billion pounds ($2 billion) from Newcastle-based Northern Rock yesterday, the Financial Times reported today, citing an unidentified person close to the situation. Northern Rock shares plunged 31 percent to a six-year low yesterday after the company said the British central bank will provide it with an unspecified amount of credit after rising credit costs left it unable to make new loans.

About 250 million pounds was withdrawn from Northern Rock branches yesterday and the remainder transferred via the bank's Web site, the Financial Times said. The total figure equates to about 4 percent of the bank's deposit base, the FT said.

`Remains Solvent'

Northern Rock ``remains solvent,'' spokesman Don Hunter said today in a telephone interview, reiterating comments yesterday from the U.K. Financial Services Authority. The bank didn't draw on the emergency lending facility yesterday, he said. ``As far as I know, that's still the case,'' he added.

If customers of the bank ``want to get their money out, they can,'' U.K. Chancellor of the Exchequer Alistair Darling said in an interview with Channel 4 television.

``British banks do have strong balance sheets,'' Darling said. ``I am determined that we will maintain the stability of the banking system.''

Northern Rock will pay a penalty interest rate of close to 7 percent to borrow funds from the Bank of England, the Guardian newspaper reported today, without citing anyone. Darling authorized the emergency funding, saying the Bank of England will step in as the lender of last resort. The terms of the facility haven't been disclosed.

Deposit, Withdraw

``When you get these difficulties, that's what central banks are there to do,'' Darling told Channel 4. Northern Rock is the only U.K. lender to have sought emergency funds from the Bank of England, he said.

Northern Rock remains solvent, and clients can deposit and withdraw money, an FSA statement said late today. Long lines at branches and difficulties with the Web site are ``logistical'' problems that are unrelated to the bank's financial condition, the statement said.

``If we believed that Northern Rock was not solvent, we would not have allowed it to remain open for business,'' FSA Chairman Callum McCarthy said in the statement.

Northern Rock, whose roots date back to 1850, is the U.K.'s third-biggest lender by gross mortgages with loans worth 17.4 billion pounds as of June 30.

Several U.K. and foreign banks have expressed interest within the last two weeks in possibly bidding for Northern Rock, the Daily Telegraph reported today, without citing anyone.

Barclays Plc, Royal Bank of Scotland Group Plc, Lloyds TSB Group Plc, Credit Agricole SA, Banco Bilbao Vizcaya Argentaria SA and National Australia Bank Ltd. may be bidders, the newspaper said.

Northern Rock doesn't comment on ``market speculation,'' Hunter said.

`Perfectly Safe'

In Golders Green, a customer who would identify herself only as Marilyn said she was ``reassured'' by reports the bank might get taken over. Still, images on television of lines at Northern Rock branches yesterday prompted her to seek to withdraw her money today. ``I thought if I didn't come down here, I'd regret it.''

She spoke after she'd been in the line for five hours and still was about 10 feet from the door of the branch.

A woman named Sonia who had entered the bank said the employees were ``charming in every way.'' Withdrawing her funds was ``easy and they even added my interest beforehand.''

When the branch closed at 2 p.m. today -- two hours later than usual on a Saturday -- the line dispersed promptly.

Customers at the Kingston branch, southwest of London began lining up as early as 6 a.m., Sky News reported. The branch had stayed open late last night.

`Perfectly Safe'

One customer at the Kingston branch, southwest of London, who identified himself only as Tony said he was walking past just to see ``what the lines were like,'' he told Sky News. He said his money was ``perfectly safe'' and that ``people didn't need to panic.''

A mobile billboard advertising a suicide prevention counseling service was parked in front of the Edinburgh branch, Sky News showed.

A spokesman for the Bank of England declined to comment today on the situation. Calls to the U.K. Treasury press office for comment weren't replied to.

To contact the reporter on this story: Poppy Trowbridge in London ptrowbridge@bloomberg.netSarah Thompson in London at sthompson17@bloomberg.net.

Last Updated: September 15, 2007 16:28 EDT