Call For Government Mortgage Intervention
March 22nd, 2008 by Lianne
The Council of Mortgage Lenders (CML) has called for action from the Bank of England to help with the mortgage crisis. Regular readers will be aware that many mortgage providers have been withdrawing their new mortgage offerings, because of the influx in new mortgage applications and the lack of wholesale market funding for lending.
Mortgage lending has dropped in February by 7% compared to January. They have requested that the Bank of England improve levels of liquidity to enable the banks to continue lending.
The Bank of England held interest rates at 5.25% in March and some believe there will be a further cut in April. House prices fell in February to levels close to the history low on June 1990, according to the Royal Institute of Chartered Surveyors. An interest cut would help to stimulate the housing market, but without the supply of mortgages to meet it, this next month or two could be interesting.
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