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Bank provides £14bn for mortgages to help boost housing market

Up to £14bn is being made available for mortgages over the next two years by Northern Rock.

The bank will make £5bn available this year and a further £9bn in 2010. The Government says the move by the nationalised bank is intended to help the struggling housing market to recover over the next 12 months.

Some mortgages will be provided at up to 90% of the value of the property being purchased. The average value of new mortgages is currently £112,000. At that rate, the extra £5bn being made available this year could fund the purchase of 44,600 homes of average size.

Ministers say they want to see a well functioning mortgage market where "lenders lend responsibly and borrowers have access to a wide range of mortgages that they can afford to repay".

The extra funding from Northern Rock may not have a dramatic effect on the depressed property market but it is nevertheless a step in the right direction and gives some ground for optimism for those looking to buy or sell a house.

Both buyers and sellers who are thinking of re-entering the market may find that the system has changed considerably since the last time they moved home - mainly because of the introduction of Home Information Packs (HIPs).

HIPs are intended to simplify and speed up the process by obliging the vendor to provide potential buyers with important information such as the results of local searches and evidence of title as soon as the property is put on the market. This was the kind of information that each buyer used to have to find out for themselves.

Anyone selling a home regardless of its size must now provide a HIP for potential buyers.

Please contact us if you would like more details about HIPs or any aspect of buying and selling a house.

If you wish to make an appointment, or ask us a question please contact us.