Northern Rock nationalisation Northern Rock’s decision to bolster new mortgage lending by £14bn over the next two years will make only a modest difference to the frozen market. The bank will suspend its policy of encouraging existing borrowers to leave and instead focus on attracting new business – including lending to some first-time buyers with a deposit of just 10 per cent.
“Northern Rock will return to the market in a meaningful way and ... this is taking the shackles off,” said Gary Hoffman, its chief executive.
