A mortgage lending package of £1.7bn from the Royal Bank of Scotland is to be made available to the Scottish housing market over the course of the coming year.

This includes £500m released through the Treasury's Asset Protection Scheme, which is aimed at bringing financial stability to British banks during the global downturn.

The bank are set to continue to offer loans of up to 90% to help first-time buyers on to the property ladder.


Paul Geddes, chief executive of consumer banking at RBS Group, said: "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 bank's action to help reinvigorate Scotland's property market.

"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," he added.

RBS also said it is committed to releasing further funds to help the housing market if customer demand dictates.

(GK/JM)