Mortgage bank Northern Rock expects to extend its strong growth after forecasting a 20 per cent rise in lending for the first six months of the year.

The Newcastle-based finance house said it was reaping the benefits of the buoyant housing market.

Adam Applegarth, chief executive, said the bank was confident of continuing to achieve its targets for growth in assets under management, profits and return on equity.

"We are again set to deliver against our low cost, high quality, high growth strategy," he said. * Full story, see tomorrow's business page