View more on these topics

Virgin plans to double Northern Rock lending

Virgin Money plans to double the value of mortgage lending that Northern Rock advanced.

It says it aims to advance around £45bn in mortgage loans over the next five years. The target means it would lend an average of £9bn a year for the next five years, although it will not confirm how the money would be distributed over the period.

In 2010, Northern Rock’s gross lending reached £4.2bn and, while the figures have not yet been finalised, a Virgin spokesman says gross lending for 2011 was around £5bn.

Last month, the Council of Mortgage Lenders downgraded its gross lending forecast for 2012 from £150bn to £133bn due to the likelihood of weak econ- omic activity. It also cut its 2011 gross lending estimate from £140bn to £138bn.

Virgin bought Northern Rock’s “good bank” in November in a deal worth £747m, which could rise to over £1bn.

Industry consultant Michael White says: “This is good news for the market. Virgin is saying it has grand plans and intermediaries will benefit from that.”

Recommended

Review will get you off on the right foot

If you’re anything like me, you were inundated with socks at Christmas. Rather than just add them to an already overflowing drawer, it presented an opportunity to get rid of some of my more threadbare footwear and start afresh.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Aaron Griggs 26th January 2012 at 5:24 pm

    Tells hope that the mighty Virgin brand lives up to it…

    Looking at the history of many Virgin companies i’m sure it will make its mark !!!

  • Grey Haired Underwriter 26th January 2012 at 12:20 pm

    I hope it’s not going to rely upon wholesale funding!!!!