The mortgage market may begin to turn around following the recent government’s intervention and cash injection into some of the UK high street banks. As part of the financing agreement with the banks, borrowers will be able to get competitive mortgages, priced at 2007 levels, for at least the next three years. The banks have also agreed to support schemes which help those struggling with mortgage payments to stay in their homes, and to support the expansion of financial capability initiatives.
The Council of Mortgage lenders (CML), however is not confident in the current market where house prices have been falling and demand has been reduced, that it would be either prudent or desirable for the volume of lending to home-owners to equate to 2007 levels.
The CML assumes that the reference is a more generic aspiration to achieving broad deep mortgage market with a good spread of products, enabling access to the mortgage market for all credit worthy borrowers-and this would be an aspiration that the CML supports.
The CML welcomes the government’s confirmation and clarification that it is firmly committed to restoring flows of lending to the mortgage market. It also supports the objectives clarified by the government and seeks to contribute towards restoring the market to a more positive position.
Michael Coogan, CML Director General said,
“Lenders have been working hard to continue to deliver a flow of competitive mortgages into the market, as well as to ensure that as many people as possible are able to keep their homes if they suffer temporary financial difficulties. These efforts will continue and we look forward to working closely with government to help deliver these objectives.”
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