R K Posted July 15, 2008 Share Posted July 15, 2008 http://news.bbc.co.uk/1/hi/business/7507904.stm Mortgage lenders have drawn up a plan to help kick-start the mortgage market amid falling house prices and a squeeze on the availability of home loans. The Council of Mortgage Lenders (CML) want to free up UK banks and building societies to offer new home loans. It wants the Bank of England to guarantee a market in mortgage-backed securities and covered bonds. This would encourage investment in the market for these products, pushing funds back into mortgage lending. Confidence The CML said that the biggest issue in the mortgage market was the lack of available funding to support new mortgage lending. This has led to the number of mortgage deals on the market being squeezed and the cost of these loans rising. The lenders' body wants the Bank to essentially offer a form of secured lending. This would persuade investors to buy mortgage-backed securities - something that has dried up during the credit crunch. The scheme could be set up quickly and would act as a catalyst to restore market confidence, the CML said. Unlike the Bank of England's Special Liquidity Scheme - which allowed banks to swap £50bn of mortgages for government bonds - it would cover new mortgages and investors would still take the credit risk. "A year into the credit crunch, there is no merit at all in waiting until the autumn before taking steps that will help the housing market to remain more resilient," said CML director general Michael Coogan. The plan could receive a cool welcome from those who believe it would involve the state having to underwrite the housing market. Others might suggest that the drought in mortgage finance would continue without any action. Go on Mervyn, you know you want to............. Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted July 15, 2008 Share Posted July 15, 2008 (edited) No no no no, we have to let the excellent efficient private sector deal with its own problems, can't have them turning Commie on us. Especially not since we're moving towards a privatised health service to make use of this wonderfully efficient way to run a society. Would be terribly embarrassing all round if we had a socialised banking system and a privatised healthcare system. We have to get Dickie Branson to the Moon now that he's done everything except have a hooker in space, and we may as well let him skim a little off granny's hip operation. Edited July 15, 2008 by DissipatedYouthIsValuable Quote Link to comment Share on other sites More sharing options...
Fancypants Posted July 15, 2008 Share Posted July 15, 2008 No no no no, we have to let the excellent efficient private sector deal with its own problems, can't have them turning Commie on us.Especially not since we're moving towards a privatised health service to make use of this wonderfully efficient way to run a society. Would be terribly embarrassing all round if we had a socialised banking system and a privatised healthcare system. Shut up and buy a house. Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted July 15, 2008 Share Posted July 15, 2008 it would cover new mortgages and investors would still take the credit risk Isn't this the sticking point at the moment? As an aside, for anyone out there who has never met any of these heads of banks, building societies etc., they aren't genii. In fact most of them are of very average intelligence, as can be seen from this idea! Quote Link to comment Share on other sites More sharing options...
Paddles Posted July 15, 2008 Share Posted July 15, 2008 (edited) Isn't this the sticking point at the moment?As an aside, for anyone out there who has never met any of these heads of banks, building societies etc., they aren't genii. In fact most of them are of very average intelligence, as can be seen from this idea! I met Derek Wanless once when I was about as junior an employee as one could get. It heartened me that a man as clueless as that could run a major high street bank.* Of course, later I realised that he didn't run it; he ran it into the ground. There's a man who seems to "enjoy bad luck". http://en.wikipedia.org/wiki/Derek_Wanless Derek Wanless CV 1. Ruined Nat West 2. Continued the ruination of the NHS 3. Fell asleep at the wheel of Northern Rock Edited July 15, 2008 by Paddles Quote Link to comment Share on other sites More sharing options...
symo Posted July 15, 2008 Share Posted July 15, 2008 Merv quick reminder : moral hazard alert. Don't listen to these r'tards. Quote Link to comment Share on other sites More sharing options...
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