U.K. mortgage-financing to be reviewed

In London this week the U.K said a review of Britain’s mortgage-financing market, although it’s believed that the government won’t respond to industry demands immediately in the call to improve the current market conditions.

Due to the downturn in the housing market, the U.K. Chancellor of the Exchequer Alistair Darling commissioned a report by former HBOS Chief Executive James Crosby earlier this year, this was in a bid to reverse the squeeze on the market activity.

Although the final report is expected at the end of the year, there will be an interim report that should be presented tomorrow. The interim report by Mr. Crosby’s is believed to be just a analysis of the state of the mortgage market, rather than a policy that will make recommendations, although it will probably set out some areas for the government to consider. It’s unlikely that the government will act on the report before the pre-budget review this autumn.

Meanwhile, U.K. Housing Minister Caroline Flint said Sunday that the government will look at doing more to help the housing market.

The U.K. Housing Minister Caroline Flint is looking both internationally and nationally at ways they can soften the blow for people who are faced with financial worries with the low housing market and cost of living hike.

There is a plan by the Council of Mortgage Lenders to reopen access wholesale mortgage finance and encourage new mortgage lenders. This would allow lenders to swap new mortgage-backed securities for cash. This scheme amongst others is being considered by the U.K. Treasury.

 Source: Walll Street Journal

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