11 Mar

RBS in new mortgage pledge

RBS in new mortgage pledge

An extra £1.7 billion worth of mortgages will be offered to homebuyers in Scotland over the course of 2009 and 2010 under new plans announced by the Royal Bank of Scotland (RBS).

The lender, which has been bailed out by the government, revealed that it will be making available home loans as part of an agreed plan with the Treasury that will see it increase lending in return for the state help it has received.

Such a move could help first-time buyers in Scotland who are trying to get on the housing ladder to do so more easily, with the bank stating it will offer deals of up to 90 per cent loan-to-value to help with this.

Commenting on the news, chief executive of consumer banking for RBS Paul Geddes said: "Our message to customers in Scotland is very clear: we are now, more than ever, open for mortgage business."

Responding to the announcement, Moneyextra.com urged RBS to concentrate the lending on helping first-time buyers and buy-to-let investors who are struggling to raise deposits.

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