Lenders recovering - 90% mortgages return

The first major casualty of the global economic crash has recovered sufficiently to offer 90% loans to mortgage seekers.

Northern Rock, bailed out and part-nationalised by the taxpayer to the tune of billions of pounds, is offering three-year fixed deals for people who have just 10% of the total value of the property.

The return of the 90% mortgage is one indicator of a recovery and increased stability of the financial market. This type of mortgage is particularly useful to first time buyers, enabling them to get on the property ladder.

The bank states the move is to help struggling first-time buyers and people who did not have much equity in their property, though it is speculated that the decision is designed to increase profits at the group through higher-margin lending, ahead of a sale of the business.

The group's capacity to lend was restricted since its part-nationalisation but this has now been loosened, enabling it to expand its mortgage business.

Back to blog home


All content is for informational purposes only and is the opinion of the author. Nothing on this website should be interpreted as "advice". Money Dashboard Ltd make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

Get started with Money Dashboard

Money Dashboard will help you discover where your money is going, start saving and plan for the future - for free

Related articles

Download app
Join 600,000+ people on Money Dashboard
Sign up - it's free