Northern Rock to reinstate mortgage lending

The government has confirmed that Northern Rock will revive its mortgage lending, with new loans worth up to £14 billion becoming available by 2011. The loans will be financed by money from new deposits, repayments of existing loans, and more government money, as part of a wider move to restructure the nationalised lender. The bank says it will offer ‘responsible’ loans for first-time buyers and customers who are remortgaging. A spokesperson said that mortgage would be lent at up to 90 per cent of the value of the property being bought.