21 Apr

Bank's decision 'is a good one'

Bank's decision 'is a good one'

The Intermediary Mortgage Lenders Association (Imla) has welcomed the decision by the Bank of England to offer £50 billion to the mortgage market.

But the outfit did suggest that the Bank could have entered the fray "more quickly" in the bid to aid the housing industry.

However, executive director at Imla Peter Williams argued that the arrangement is good because service providers will be responsible for any lost money.

And he stated that while the situation is not a perfect one it is pleasing to see in the face of the current credit crunch.

He said: "Despite its limitations, we must regard this as a positive step in terms of kick-starting the mortgage industry and it should reduce negative pressures in the housing market and in the wider economy."

This week, the Bank announced that it will trade risky mortgage debt taken on by banks for government bonds to offer a helping hand.ADNFCR-1222-ID-18560898-ADNFCR

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