AMI welcomes Rock return

The trade body said it was a positive sign that the government had acknowledged the need to free up lending in the mortgage market, adding that this was a first step in the process, with much more action needed.

Chris Cummings, director general of AMI, said: "Northern Rock's decision to open up lending channels will undoubtedly increase the options available to potential buyers and those looking to remortgage."

"We look forward to working with Northern Rock, which has historically been a strong intermediary lender. We trust their commitment will be as just as strong as it re engages in the lending arena," he concluded.