RBS £1.7bn mortgage promise

Commenting on the RBS’s £1.7bn mortgage promise, Richard Mason, Managing Director at Moneyextra.com said: "£1.7bn will certainly provide the Scottish economy a much needed boost by breathing new life into the housing market, however I would urge RBS to avoid bowing to Government pressure to lend.

"Rather than dishing out cash on a first come first serve basis, RBS should try to look at helping those who are currently finding it most difficult to borrow. First Time Buyers, Buy to Let investors and those with a small deposit are currently struggling to find the funds to buy a property, despite being perfectly able to meet the monthly repayments.

"Our recent research on the Scottish property market revealed that 387,961 Scots are looking to buy their first property in the next six months, compared to the 55,120 Scottish homeowners who are looking to downsize. However, of the 1,563 mortgages currently available from prime lenders, almost 90% require a deposit of 20% or more.

"Regardless of RBS's funding ‘promise', sensible lending will ultimately prevail and the bank will be forced to compete alongside every other lender. Whether RBS's promised injection of mortgage funds will bring new hope to the millions of people looking to buy, only time will tell.

"Our advice remains, strike while the iron is hot. As prices continue to tumble, investment opportunities within the property market are conversely growing and there are bargains to be had which are unlikely to be around for long."