The Treasury has snubbed calls from Britain’s lenders for direct government intervention to kick-start the mortgage market.
This week’s package of measures intended to stabilise the housing market will not meet a key demand from banks, building societies and housing-market lobby groups.
The Council of Mortgage Lenders has said that without government intervention in the market for mortgage-backed securities, the lending famine that has resulted in a 65% drop in new approvals over the past year will continue.
But the Treasury, which is awaiting final recommendations from former HBOS chief executive Sir James Crosby, remains unpersuaded.
Sunday Times
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