7 Jul

CML calls for increased funding for mortgage market

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.

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