Existing customers with nationalised lender Northern Rock will be able to remortgage with the group for the first time since late 2007.
The bank stopped offering new deals to customers after its near collapse, but now customers with 25% equity in their homes who are coming to the end of deals can remortgage with the group.
Northern Rock said that only customers who meet strict affordability criteria will be able to remortgage, but it will look to "broaden the criteria going forward".
Although existing customers with 25% equity have been offered new deals for the past three weeks, those who need to borrow 90% of their property's value could soon be able to get loans with Northern Rock.
It is thought the move marks the start of improving the quality of its loan book as the Government looks to sell off the bank to the private sector.
The Government is expected to make the sale before the general election, possibly as early as this autumn, and speculation is already mounting as who could be in the running to buy the bank, including Tesco and Virgin.
Virgin had tried to buy Northern Rock at the time of its collapse, but the Treasury is not currently in talks with any potential bidder.
The bank received £27 billion in emergency loans from the Bank of England, but it was later nationalised in February 2008.
In March this year Northern Rock still owed £9.8 billion to the taxpayer and it has since slowed its debt repayments to lend an extra £14 billion over the next two years to help the housing market.
It hopes to lend a further £5 billion this year, which will improve the quality of its loan book to make it more attractive to potential bidders.
As part of the sale the bank will be split into two, putting its toxic loans and assets into a so-called "bad bank" that will then enable it to sell on the customer savings and network of 70 branches.
This could then remain with the Government where it would be run by UK Financial Investments.
Copyright © Press Association 2009