Saturday, May 22, 2010
Recovereh at risk
FT: Housing market recovery shows signs of stalling
Hopes of a springtime recovery in the housing market are set to be dashed, according to a slew of data that paint a bleak picture of prospects for hard-pressed homeowners. Mortgage approvals in April were at their lowest level for a year, while the Council of Mortgage Lenders warned that its members are facing higher costs as they compete for wholesale funding. This is likely to mean that rates on mortgages may have to rise even if the Bank rate remains on hold.
Posted by little professor @ 12:06 PM (1617 views) Add Comment
3 Comments
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1. quiet guy said...
"Earlier this year, the CML's call for ministers to extend the expiry date of existing assistance to the banking sector was sharply rebuffed by the Bank of England. Yesterday, it called on the new government to re-examine the issue. "Unless funding issues are addressed, any recovery in lending may well be curtailed as the repayment date on the support schemes gets closer," said Michael Coogan, CML director general."
So who will blink first? The Conlibs don't have any money and can only bail out the borrowers by more borrowing.
2. paul said...
Who will blink first? Well, we know who *should* blink first.
This lie that the problem is lack of finance has carried on long enough. What the banks are saying is:
"Give us free money so that we don't have to face up to the fact that our balance sheets and residnetial mortgage book are way overpriced"
So far, the Bank of England and previous government have thrown literally hundreds of billions of freshly printed pounds at them and guess what? The more money that the government throws to them, the larger the problem becomes.
Its about time Bank of England told the CML to grow up.
recaptcha: "some cravings"
3. Agent Provocateur said...
Recall all the bonus payments that should tied them over for another month or two