Rock returns......but not yet for Contractors

Northern Rock has announced it will be lending again but they are yet to reconfirm our contract-based underwriting.

Northern Rock was one of the first of many banks to crumble in the credit crunch but has announced it is making a come-back with up to £14bn of new mortgage lending planned over the next two years.

In a statement the bank said that they intend to offer a range of new mortgage products aimed at those purchasing new homes and remortgaging existing properties. Particular emphasis was placed on lending to first time buyers although at present the schemes available don't yet reflect this as they still seem to be chasing the lower loan to value clients that all the other lenders are targeting. They also have a renewed focus on responsible lending.

In order to fund the new lending, Northern Rock will be given additional funding by the Government as a result of an extended repayment schedule for the debt that the taxpayer contributed during the 2007 rescue of the company.

In previous years Northern Rock was one of the companies that we had negotiated our contract based mortgage underwriting but sadly last summer this was largely lost in a rationalisation of such agreements. Given the announcement of this new funding we are working hard to get the agreement to use contract alone back in place so that Contractors can fully benefit from this new source of funding... watch this space.

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