24 Feb

Banks 'stepping up mortgage lending'

Banks 'stepping up mortgage lending'

UK banks are stepping up their mortgage lending volumes, the British Bankers' Association has said.

Chief executive of the organisation Angela Knight told the Society of Conservative Lawyers that British lenders are picking up the slack left by overseas banks that have sought to concentrate on their own domestic markets since the onset of the credit crunch.

She stated: "Banks are already providing around two-thirds of new home loans as others are currently unable to provide mortgages."

However, there are limits to how much UK banks alone can do, Ms Knight remarked.

The comments by Ms Knight came as the government was announcing that nationalised bank Northern Rock is to be used to provide more mortgage finance.

Over the next two years the Newcastle-based institution will offer £14 billion in new mortgages, of which £5 billion will be allocated for this year and £9 billion for 2010.

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