Northern Rock is looking to increase its presence in the mortgage market with plans to make up to £14bn in new loans over the next two years, including a return to the higher loan to value (LTV) end of the morket with a 90% LTV mortgage loan.

This is great news for potential mortgage borrowers as currently only one lender offers 90% LTV mortgages at much less than 7%. Hopefully Northern Rock will release some competitive products, which may in turn increase the level of competition in a currently somewhat sluggish mortgage market.

The new plan is to be funded by further government money, deposits and repayments from currently existing loans.