CML welcomes Bank's special liquidity scheme
22nd April 2008
The Council of Mortgage Lenders (CML) has dubbed the Bank of England's new £50 billion liquidity scheme for UK mortgages "a welcome move".
Michael Coogan, director-general of the CML, said the initiative was something previously requested by the council and added that the consequences of it should turn out to be positive.
Commenting on the programme's structure, which will see residential mortgages worth £50 billion taken from lenders in exchange for gold-plated government bonds, he suggested that banks and building societies will have to pay an "appropriate price" to reduce taxpayer risk.
"Further details are also awaited on how much of the additional liquidity might be recycled responsibly into mortgage products or pricing," Mr Coogan remarked, adding that this will help lenders "bridge the gap" between the amount of money consumers want to borrow and how much funding is actually available.
Other organisations have welcomed the Bank's announcement, including the Intermediary Mortgages Lenders Association, which said that it is likely to boost the mortgage industry.
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UK Mortgages
22nd April 2008
The Council of Mortgage Lenders (CML) has dubbed the Bank of England's new £50 billion liquidity scheme for UK mortgages "a welcome move".
Michael Coogan, director-general of the CML, said the initiative was something previously requested by the council and added that the consequences of it should turn out to be positive.
Commenting on the programme's structure, which will see residential mortgages worth £50 billion taken from lenders in exchange for gold-plated government bonds, he suggested that banks and building societies will have to pay an "appropriate price" to reduce taxpayer risk.
"Further details are also awaited on how much of the additional liquidity might be recycled responsibly into mortgage products or pricing," Mr Coogan remarked, adding that this will help lenders "bridge the gap" between the amount of money consumers want to borrow and how much funding is actually available.
Other organisations have welcomed the Bank's announcement, including the Intermediary Mortgages Lenders Association, which said that it is likely to boost the mortgage industry.
<< Back to News