The region's money lenders are providing rich pickings for news at the moment.

Our local mortgage bank, Bradford & Bingley has announced the release of a new product under the auspice of its "Mortgage Express" specialist-lending arm.

The mortgage package in question - Max130 - allows first time buyers and those with existing debt to borrow 130 per cent of the value of their home. The scheme has been piloted for two years in Northern Ireland and the bank is convinced there is a market for loans of this type. Despite its confidence Bradford & Bingley could find itself the subject of an inquiry by the Commons Treasury Select Committee.

The Commons group is concerned that high value loans will place borrowers into negative equity from the outset. The country is facing huge amounts of debt and the Bank of England recently pinpointed loans of this nature as contributing to the £1 trillion debt pile.

In response, Mortgage Express stressed its rigorous lending procedures.

The share price was little moved by the news but one industry expert suggests the share price rally is over. As the graph illustrates, the stock has drifted from the 350p that marked an 18-month high.

The housing market is becoming increasingly precarious. In addition, the buy to let market is open to potential falls in volume meaning there could be trying times ahead for Bradford & Bingley.

The commercial asset finance subsidiary of Batley-based Cattles was sold for a sum of £70m, cash it was announced on January 14. The Hull-based subsidiary works on behalf of smaller UK companies to facilitate purchases of company vehicles and engineering and manufacturing plant.

The buyer is Close Brothers Limited which will incorporate the new business into its existing asset finance activities. The proceeds will be used by Cattles to develop its consumer finance operations.

Cattles' sector companion Provident Financial provided a trading update in the run-up to Christmas. While its home collected credit unit is shaping up well, diversification into the credit card market is proving more costly than expected.

The door-to-door lending industry, which includes Provident Financial and Cattles, could face a shake-up. An inquiry from the Competition Commission, launched at the end of 2004 is investigating the anti-competitive style of the business. Loans with an Annual Percentage Rate of up to 177 per cent are targeted at high-risk low-income families who are unable or unwilling to borrow from other sources.

Provident Financial, which has approximately 50 per cent of the industry under its control, could be broken up under the powers of the commission. The process could be long and expensive but the company has assured it will work together with the commission.

In spite of the inquiry, which was not unexpected, the share price is pushing the 700p level, which has not been seen since March 2004.