Northern Rock are looking to lend again?

Will the property market be stabilised by the re-structured Northern Rock?

After repaying 18 billion last year, the government has eased back on its demands to see the remainder of the £27 billion loan paid back by Northern Rock straight away and has sank a further £10 billion to fund new lending.

This might see Northern Rock starting to lend again and bring buyers back to the property market after a year of lenders trying not to lend.

Robert Peston reports that it will offer mortgages worth 80% or 90% of the value of properties, compared to the 75% loans that are now the industry norm.

See Robert Pestons post

Could this mean a leveling off for property prices.