10
Dec
Government 'needs to support' liquidity in mortgage market
The Association of Mortgage Intermediaries (AMI) has urged the
government to encourage lenders to increase funding levels and
support liquidity across the mortgage market.
Speaking in response to the Bank of England's decision to leave the
base rate of interest unchanged at 0.5 per cent on December 10th,
the AMI stated that Westminster needs to act now before the rate
increases.
Director of the association Robert Sinclair said: "Lenders remain
capital and liquidity constrained and this needs action.
Encouraging wider securitisation will be an important aspect in
opening up lending."
He added that the review on securitisation by the Financial
Reporting Council could help the government restore a normal
mortgage market.
In the chancellor's pre-Budget report, which was released on
December 9th, it was announced that the treasury will be extending
its Support for Mortgage Interest scheme.
This initiative provides financial assistance to those families who
are struggling to make mortgage payments following
redundancy.