Financials lead UK stocks higher after Scottish "No"

* Banks, asset managers up 0.5-4.4 pct on FTSE 100

* Scotland-based stocks up 0.3-4.2 pct as UK stays united

LONDON, Sept 19 (Reuters) - UK banks and asset managers led London equity indexes higher on Friday after Scottish voters rejected independence, prompting a relief rally from investors who had been concerned the United Kingdom might break up.

Lenders with strong exposure to Scotland, including Royal Bank of Scotland and Lloyds Banking Group, were up 2.5 percent to 4.2 percent. Asset managers Schroders (LSE: SDR.L - news) , St. James' Place and Aberdeen Asset Management (Other OTC: ABDNF - news) rose between 1.3 percent and 4.4 percent.

The blue-chip FTSE 100 index was up 0.7 percent at 6,864,18 points.

Engineering groups Weir and Babcock were up between 1.7 percent and 2.9 percent.

A basket of top Scotland-based stocks on the broader FTSE 350 index also traded higher, with its dozen or so components up between 0.3 and 4.2 percent.

"The markets were pricing in a no vote... but now that we've got confirmation of that it's going to propel stocks on from here," Mike McCudden, head of derivatives at Interactive Investor (Other OTC: IVSBF - news) , said.

Shares (Frankfurt: DI6.F - news) of firms with significant exposure to Britain's North Sea oil industry also rose, with North Sea rig operators Petrofac and Enquest (LSE: ENQ.L - news) up 3.4 percent and 2.7 percent respectively.

(Reporting by Tricia Wright; Editing by Lionel Laurent and John Stonestreet)