23 Apr

CML backs bonds plan

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.ADNFCR-1222-ID-18564723-ADNFCR

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