Northern Rock given permission to offer 90% mortgages

In the UK, Northern Rock is to start offering 90% loan-to-value mortgages again, three years after its collapse and subsequent bailout by the taxpayer.

Its aggressive lending caused one of the most high-profile failures of the financial crisis.

The lender's "Together" mortgage offered borrowers up to 125% of their property value.

The FSA has given it permission to raise its current threshold from 85 to 90%.