10 Dec

Government 'needs to support' liquidity in mortgage market

Government 'needs to support' liquidity in mortgage market

The Association of Mortgage Intermediaries (AMI) has urged the government to encourage lenders to increase funding levels and support liquidity across the mortgage market.

Speaking in response to the Bank of England's decision to leave the base rate of interest unchanged at 0.5 per cent on December 10th, the AMI stated that Westminster needs to act now before the rate increases.

Director of the association Robert Sinclair said: "Lenders remain capital and liquidity constrained and this needs action. Encouraging wider securitisation will be an important aspect in opening up lending."

He added that the review on securitisation by the Financial Reporting Council could help the government restore a normal mortgage market.

In the chancellor's pre-Budget report, which was released on December 9th, it was announced that the treasury will be extending its Support for Mortgage Interest scheme.

This initiative provides financial assistance to those families who are struggling to make mortgage payments following redundancy.ADNFCR-1222-ID-19507197-ADNFCR

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