RBS puts £1.7 billion into Scottish mortgage lending

Date:Thursday 12th March 2009
Author: Rachel Fletcher

Scottish homebuyers are to benefit from £1.7 billion in new mortgage lending from the Royal Bank of Scotland (RBS).

The measure was welcomed by Scotland secretary Jim Murphy MP.

It comes as part of the support measures and asset protection scheme brought in by the government and will be made available over the course of the year.

John Swinney, the Scottish finance secretary, also said that the move was a positive one.

"With interest rates having reached a record low, it is crucial that the banks now lend effectively and appropriately to help householders and businesses across Scotland," he said.

Finance website moneyextra.com welcomed the move but stressed that the mortgages should go to those who are currently the least able to secure a home loan.

This would include first-time buyers and people with small deposits.

Moneyextra.com said that the loans should not simply be given to whoever applies first and said that sensible lending would have to be carried out.