Northern Rock introduced a new range of higher-risk mortgages to boost profits as it prepares to return to the private sector three years after lax lending practices led to its bailout and nationalisation.
The state-owned bank is offering three new mortgages each requiring a 10% deposit from borrowers – down from a previous 15% minimum. The new mortgages charge a higher interest rate than those requiring more equity to reflect the greater default risk.
Northern Rock’s move was welcomed by many in the industry, who said it would help first-time buyers enter the market.
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http://www.guardian.co.uk/business/2011/feb/28/northern-rock-offers-90percent-mortgages
