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Northern Rock mortgage boost welcomed

Northern Rock mortgage boost welcomed

Category: Mortgages

Updated: 25/02/2009
First Published: 24/02/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Northern Rock's announcement that it intends to increase mortgage lending by up to £14 billion over the next two years has been welcomed by the Council of Mortgage Lenders (CML).

While the actual amount that will be lent will depend on market demand, approximately £5 billion of new mortgage lending is set to be released in 2009, and between £3 billion and £9 billion from 2010 onwards.

CML's general director, Michael Coogan, commented: "While other lenders will no doubt be watching carefully to assess the competitive impacts of Northern Rock returning to the market as an active mortgage lender, in overall market terms anything that improves the supply of lending is a positive."

It is expected that the increase in home loan approvals will mean that mortgage providers will be in a better position to lend to each other.

The move was also met with enthusiasm by the AMI's (Association of Mortgage Intermediaries) director general, Chris Cummings, who said: "It is a positive sign that the Government has acknowledged the need to free up lending in the mortgage market.

"This is a first step in the process, but much more action will need to be taken. Northern Rock's decision to open up lending channels will undoubtedly increase the options available to potential buyers and those looking to remortgage."

Keep an eye on for specific details of Northern Rock's products as and when they become available.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.