Northern Rock to increase mortgage lending by £14bn

Northern Rock has announced that they are to increase their mortgage lending over the next two years, this forms part of a plan from the Government in the hope of pulling the UK economy out of this deep recession that we find ourselves in.

Northern Rock has said that they will increase mortgage lending by an extra £5bn in 2009 and another £9bn in 2010. The Chancellor Alistair Darling has said that the Northern Rock will now start to offer 90 per cent mortgages; this is a major effort by the bank to help inject some life in to the limp housing market.

Northern Rock are funding this extra lending with a mix of new customer deposits, as well as more money from the taxpayer. The bank has been doing very well and is already ahead of their payment repayment schedule, from the £27bn that the bank owed last year, there is only a balance outstanding of £9bn.

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