Northern Rock is reversing its post-nationalisation strategy of running down its mortgage book and will begin offering new loans of up to 90% of a property’s value. The move offers hope to the UK’s beleaguered housing market, which despite the recent rise in new buyer enquiries reported by the Royal Institution of Chartered Surveyors and property [...]

More: Northern Rock returns to new lending at 90% LTV

Surely this is one of the reasons why we got into this mess in the first place?
All it takes is a slight reduction in house prices, and 10% can easily be achieved and you are in a negative equity position?
This seems like madness on the part of the government trying to stimulate the economy.