Nationalised bank Northern Rock has been given longer to pay back its £26 billion government loan.

Until now, customers have been encouraged to remortgage with other banks if possibly, which has been difficult during the economic crisis.

Now, however, the bank has been given longer to pay back the remainder of its loan, meaning that it can afford to keep customers.

Chancellor Alistair Darling said: “We decided it is not appropriate for Northern Rock to continue to shrink its activities.”