Property Investors Guide
Buy To Let & Property News Archive
29 July 08 - No 'Quick Fix For Mortgage Market
The crisis in home-loan funding will continue for some
months with no quick fix in sight for the stricken mortgage
market, a study is expected to report.
The Crosby Review, which is being carried out by the former
head of the Halifax Bank of Scotland Group (HBOS), Sir James
Crosby, said funding of home loans should be left to the
market.
Sir James, who was appointed by Chancellor Alistair Darling
to lead the review in April, concluded that Britain should
avoid US-style government-backed agencies to tackle the
funding crisis, according to the Financial Times.
But the independent report is thought to have stopped short
of making recommendations on how to tackle the problems
caused by the credit crunch.
Sir James is mooting the idea of possible further support
from the Government on a temporary basis to help kick-start
mortgage lending, but banks and building societies will
have to wait for the second report in the autumn for his
final conclusions.
The Chancellor is also understood not to be planning to
make any announcements on the issue until the Pre-Budget
Report.
The move has angered lenders, with the Council of Mortgage
Lenders saying earlier this month that the Government must
"act swiftly" to resolve the current mortgage
drought.
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
Call us on 0845 095 6900 for Your Complimentary Investment Property Consultation.
Property Investment
