New Virgin mortgages are planing to double Northern Rock mortgage lending.
Virgin mortgage plans are being developed to significantly increase the level of mortgage lending advanced by Northern Rock.
Virgin Money says it intends to grant around £45 billion in new mortgages during the five year period to 2017. This target means that on average of £9 billion will be lent in Virgin mortgage products every year for five years. The lender however has not advised how the lending will be advanced over the period stated.
In 2010 the gross lending figure for Northern Rock was £4.2 billion and while figures are not yet confirmed for 2011, a Virgin Money spokesman has said that the gross lending figure was likely to be in the region of £5 billion.
In January, due to market predictions for weak economic activity, the CML significantly reduced its gross mortgage lending forecast for this year from £150 billion to £133 billion and cut its gross mortgage lending estimate for 2011from £140 billion down to £138 billion.
Virgin Money purchased the Northern Rock good banking back in November 2011 and the deal worth £747 million, was hailed as great news for the mortgage lending market. New Virgin mortgage products are planned which could open up mortgage lending, there are few innovative mortgage deals offered by lenders at the moment and it is hoped with Virgin's entry into the market
