How can the government save the UK mortgage market?

The CML have now urged the government to step in and act quickly to try and resolve the current funding problems in the UK mortgage market. The Council of Mortgage Lenders are said to be unhappy with the Crosby Review, this was set up by the Chancellor to find out how they can restart the wholesale finance markets.

The CML are unhappy as the Crosby Review has said that they will not be making any recommendations in its interim report.

The Council of Mortgage Lenders has stepped in and has drawn up their own blueprints, in the hope of addressing this funding issue.

The CML has said that they will be able to reduce the severity of the downturn in the UK housing market. “The CML firmly believes that with quick and decisive implementation of the mortgage market funding proposal, the Government could mitigate the difficulties that households and the housing market will otherwise face, as well as helping to restore greater confidence to the financial system as a whole.”

The plan that the CML has proposed involves the Bank of England offering a secured lending repo facility, this plan will use RMBS and CBs as collateral.

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