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There have been calls for the nationalised bank Northern Rock to offer mortgages to people on lower incomes so they can have the opportunity to buy properties through low-cost ownership schemes.
The National Housing Federation (NHF) believes that the Government should make the bank lend to people, such as first-time buyers, key workers and social housing tenants.
It feels the bank should be made to take on a social purpose now it has been nationalised and help people who are eligible for the scheme but who are struggling to get a mortgage.
There are thought to be around 10,000 vacant homes across the country for those people on lower incomes.
This is despite the fact that housing associations are reporting increased interest from potential buyers of up to 25%.
David Orr, NHF chief executive, said: "Given that Northern Rock has been nationalised it should now be made by ministers to take on a social purpose and ensure that those people on low-to-moderate incomes who can afford to buy a low-cost home, and have a good credit rating, are given access to mortgages.
"Such a policy would allow people on lower incomes to buy their own home where they can afford it, would help kickstart the housing market, and ensure that thousands of homes currently lying vacant are used.
"At the moment house purchases are being blocked by reluctant lenders, limited mortgage products and exorbitant fees."
It was announced last week that Northern Rock would reduce the rate at which it is reducing its mortgage book.
The move should help to ease the pressure on the limited pool of funds that is available for lending from other banks, some of which was being taken up by former Northern Rock customers who were being forced to remortgage elsewhere.
Copyright © Press Association 2009
