We will fulfil our £14bn promise, says Northern Rock
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Northern Rock says it is on track to meet its pledge to provide £14bn in new mortgage lending in 2009/10.
The nationalised bank, which was split in two in January to become Northern Rock Asset Management and Northern Rock plc, lent £4.2bn in 2009.
The lender reported gross lending of £2.9bn in 2008 as a result of its strategy at the time to redeem its mortgage book and pay off its government loan.
Mortgages in arrears of more than three months, including those on its Together range, were 4.28% at the end of 2009 compared with the Council of Mortgage Lenders’ in-dustry average of 2.38%.
The average LTV on its whole mortgage book was 71% at the end of last year, with the average LTV for new lending standing at 56%.
Gary Hoffman, chief executive of Northern Rock, says: “We have made good progress in pursuit of our objectives which include the repayment of state aid, delivering value for taxpayers and returning to private ownership.”
