Wednesday, February 10, 2010
"The Council of Mortgage Lenders, which has warned of a mortgage famine if central bank and government funding support is not extended, can expect no joy from Mervyn King. He said that the Special Liquidity Scheme would end in January 2011 as scheduled and would not be extended. It was already the most generous such scheme in the Western world. In other words, mortgage rates will be going up sharply by the end of the year, as banks are forced to fall back on more expensive market funding for their mortgage books, rather than the near free central bank money they have enjoyed for the past several years."