23
Apr
CML backs bonds plan
Measures by the Bank of England to try and boost liquidity in the
housing market have been met with acclaim by the Council of
Mortgage Lenders (CML).
The organisation said that the developments ought to "bring further
stability and confidence" into the sector after a meeting with
housing minister Caroline Flint and the chancellor, Alistair
Darling.
And the CML suggested it is imperative that first-time buyers will
still be able to purchase properties despite the credit conditions
being witnessed at the moment.
Director general Michael Coogan claimed that a greater degree of
competition has been leveraged due to the fresh influx of
cash.
"We welcomed the chance today to discuss the steps that the
industry is taking to support borrowers in the market ... [we will]
ensure that as few borrowers as possible face the threat of
repossession," he said.
Ms Flint added that the "fundamentals" underpinning the market are
still sound, which is a major difference compared to the crash that
occurred in the 90s.
So far the proposals by the government - to swap £50 billion
in bonds for risky mortgage debts - have been given support by the
Association of Mortgage Intermediaries and the Intermediary
Mortgage Lenders Association.