16 Dec

Treasury seeks lending boost

Treasury seeks lending boost

The Treasury has made changes to its credit guarantee scheme in a bid to ease conditions for lenders, something that could help boost the availability of mortgages.

Chancellor Alistair Darling has decided to lower the cost of the fees institutions must pay the government for using the facility.

The Treasury said this would bring the UK scheme in line with those in place elsewhere.

In addition to this, the arrangements will now run for five years rather than three, giving more time for the banks to make the transition from guaranteed to open lending.

Responding to the news, director general of the Council of Mortgage Lenders Michael Coogan said this could help alleviate the "conflicting" demands placed on lenders by the Treasury.

He added: "We welcome the chancellor's acknowledgement that there is still more that the government can do to help try to facilitate more conducive conditions for lending."

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