24
Feb
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.
