RBS announces mortgage package

Some £1.7 billion-worth of mortgages are now available to homebuyers in Scotland, the Royal Bank of Scotland (RBS) has announced.

The bank said the lending package was agreed following a raft of Government support measures.

The aid package includes £500 million released through the Treasury's Asset Protection Scheme, which is designed to bring financial stability to Britain's banks during the global economic downturn.

RBS said it would continue to offer its customers loans of up to 90% to help first-time buyers get on the property ladder.

The bank also said it was committed to releasing further funds expected to help reinvigorate Scotland's housing market if customer demand dictated.

The chief executive of consumer banking at RBS Group, Paul Geddes, said of the move: "Our message to customers in Scotland is very clear, we are now more than over open for mortgage business.

"We hope the latest commitment goes some way to refuelling the Scottish economy and provides borrowers with the financial means to get back on track and realise their plans for the future."

Scottish Secretary Jim Murphy welcomed the announcement. He said: "When the UK Government moved decisively to underpin our banks it was to save the lifeline services they provide for individuals and businesses and to allow us to keep moving economically.

"Today's (Wednesday's) news shows we were right to do so and highlights the positive effects which are emerging as a result."

Finance secretary John Swinney said the bank's action would help to re-invigorate Scotland's property market in what he described as a "challenging global economic climate".

He went on: "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. I hope this will help first-time buyers get on to the property ladder and give Scotland's housing market a lift."