Mortgages ‘not about to be boosted’ by Bank action
Suggestions that the recent Bank of England issue of £50 billion in bonds to help create more liquidity for banks would quickly lead to an improvement in the mortgage market have been dismissed.
Speaking yesterday, Council of Mortgage Lenders (CML) director general Michael Coogan said that the move was "not an intervention specifically intended to re-invigorate the housing or mortgage markets".
He stated that the CML still hoped the move would help loosen the mortgage market eventually, but predicted it would take "some months for this to happen".
Mr Coogan's words were echoed today by Bank of England governor Mervyn King in Westminster as he addressed a committee of MPs, who then heard Mr Coogan repeat his views directly to them.
The mortgage market has been curtailed as lenders have raised rates, required higher deposits and made lending criteria stricter.
In a further example of this today, Chelsea Building Society has withdrawn its fixed rate mortgages and will relaunch them tomorrow (May 1st) at rates up to 0.4 per cent higher, Citywire reports.
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