25
Feb
Government 'must provide more mortgage support'
There have been calls for the government to provide more support to
all areas of the mortgage market.
Following news earlier this week that nationalised bank Northern
Rock is to boost its mortgage lending by £14 billion in the
next two years, executive director of the Intermediary Mortgage
Lenders Association Peter Williams said the government is still not
doing enough to help those most in need.
Mr Williams stated that the market is suffering from a funding
shortage and that ministers are failing to tackle "the root of the
problem".
"The government must extend their support for the mortgage market
to include the full range of lenders including non-deposit takers -
it will free them up to offer specialist products," he
remarked.
Such calls may be being heeded by the government, following news
reported by the Financial Times.
It said that Lloyds TSB and chancellor of the exchequer Alistair
Darling are in talks to agree a new deal that will see the bank
increase its lending capacity.