Mortgage lenders to follow in HBOS and RBS footsteps

Rights issues unveiled by HBOS and Royal Bank of Scotland (RBS) in April are likely to be followed by other UK mortgage lenders that seek to boost their long-term solvency ratios, say analysts.

RBS announced its rights issue on April 22 with proposals to tap the market for £12 billion. Most of this will be used to cover £6 billion of credit impairment resulting from the credit crunch, according to experts, although the funds will also boost the bank's capital ratio to a healthy 6%.

HBOS soon follo

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