Virgin Money is aiming to double the value of mortgage lending at Northern Rock, with plans to advance around £45bn over the next five years.
In 2010, Northern Rock’s gross lending figures reached £4.2bn and 2011 is estimated at around £5bn.
While the lender is unable to confirm how it plans to distribute the money and what percentage will be made available to brokers, it has made several promises to this market stream including no dual pricing, something industry experts are labelling as “good news”.
More good news is the recent figures from the Council of Mortgage Lenders (CML) which reported a 12 per cent year-on-year increase for gross mortgage lending in December despite a month-on-month decrease. Gross lending totalled £37.3bn for Q4 2011, a drop of £2.1bn against the previous quarter yet an 11 per cent increase compared to the same period in 2010.
Bob Pannell, Chief Economist for the CML, is encouraged but remains realistic:
“There is a glimmer of light ahead for households in that real incomes could stabilise perhaps even start rising by the end of the year.
“But eurozone problems mean mortgage funding prospects are uncertain, so overall UK mortgage market conditions for the year ahead remain difficult to call.”¹
¹Mortgage Strategy (Jan 2011)