Bank says it is "committed" to mortgage lending

Date:Wednesday 29th April 2009
Author: Susanna Kavka

A UK lender has stated that it is "committed" to continuing to provide mortgages to consumers.

Clydesdale Bank said it has increased mortgage lending by four per cent since March last year, despite the contractions in the market that have occurred since this time.

It also defended its 95 per cent mortgages, which it claimed are still the right products for some consumers.

Clydesdale's director of retail Steve Reid said: "We are committed to supporting customers in these challenging times. We have always taken responsible lending seriously and have no sub-prime on our books," the Scotsman reports.

However, he added that the average loan-to-value of mortgages provided by Clydesdale is now 88 per cent because people have begun to see the importance of having a deposit.

Recently, Tom Girling, mortgage manager at Yorkshire Building Society, advised consumers to look beyond headline interest rates when selecting mortgages, suggesting that they should consider factors such as arrangement fees as well.