Northern Rock to offer £14bn in New Mortgages

Northern Rock has announced plans to pump £14billion into the UK mortgage market over the next two years.

The bank which was nationalised last year has not been offering deals to new borrowers and because of poor rates existing borrowers have been remortgaging elsewhere.

The Government has said that Northern Rock will not be handing out 100% mortgages as it did in the past. All borrowers will need at least a 10% deposit At the present time there are very few deals requiring a 10% deposit and any that are available are very expensive. The Government has decided that home- owners must have access to affordable mortgage deals. The Bank is expected to make available about £5bn in new mortgages this year and up to £9bn in 2010.

Existing borrowers with Northern Rock who are reaching the end of fixed rate deals or tracker deals will be able to re-mortgage with Northern Rock. This is also good news for first time buyers hoping to get a foot on the housing ladder.

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