30 Jul

Mortgage market report suggests difficult times ahead

Mortgage market report suggests difficult times ahead

Sir James Crosby has released his eagerly awaited report into the mortgage market, which remained largely analytical but does offer a number of proposals.

The study paints a gloomy outlook, warning that reductions in mortgage availability could have a severe impact on both house prices and consumer spending.

Sir James suggested that the government may have to guarantee mortgage-backed securities if it wants to support financial stability.

He also noted that the Bank of England's special liquidity scheme could be extended, but acknowledged that any of these measures could have an adverse effect.

Commenting on the report, the National Association of Estate Agents called for swift action to be taken.

"Crosby states that he is looking 'with some urgency' at the options for stimulating supply of mortgages. However, given the current economic climate and the crippling effects this has had on consumer confidence over the past few months surely this issue should be dealt with a lot of 'urgency'," the organisation said in a statement.

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