7
Jul
CML calls for increased funding for mortgage market
The Council of Mortgage Lenders (CML) has called on the authorities
to increase the supply of funding to the mortgage market in order
to improve the housing market situation.
Commenting on the Bank of England's Credit Conditions survey, the
organisation said it "reinforces that demand from consumers for
house purchase lending is now declining", which the CML partially
blamed on the reduction in mortgage available.
Michael Coogan, the group's director general, suggested that the
Bank's special liquidity scheme has not helped to rectify this
problem thus far.
He therefore called on the chancellor to "address the fundamental
problem, which is the lack of funding available through wholesale
mortgage funding channels".
Yesterday, the operations director at Firstrung Paul Holmes noted
that first-time buyers in particular have been affected by the
decline in mortgage availability and demand for higher deposits,
but said the reduction in house prices should help to redress the
balance.
