Rock plans £14bn mortgage lending

12 April 2012

An additional £14 billion in mortgage lending over the next two years by the nationalised Northern Rock bank is expected to be announced.

It is understood the bank will make an extra £5 billion in loans this year with a further £9 billion in 2010.

The move follows Chancellor Alistair Darling's decision last month to reverse the rapid wind down of the bank's loan book.

Ministers are increasingly anxious to see the flow of credit restored to home-buyers and businesses amid continuing reluctance by the banks to lend as they rebuild their balance sheets.

Northern Rock is well ahead of schedule on its repayment of the money it borrowed from the Government, with £9 billion outstanding at the end of December compared to £27 billion a year earlier.

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