23-04-2008
Government comments on lending situation
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
With residential and buy-to-let mortgage lending a constant feature of the news, the chancellor of the exchequer and the housing minister have issued a joint statement with the Council of Mortgage Lenders (CML) on the state of the market.
Chancellor Alistair Darling assured lenders and borrowers that the government is working with the Bank of England, the CML and the Finance and Leasing Association on ways to regulate markets, adding that he hopes lenders will continue to issue loans responsibly.
Caroline Flint argued that demand for housing is in a sounder condition than it was in the 1990s but acknowledged that there are problems faced by some borrowers.
"We want to ensure there continues to be stability and fairness in the housing market and that the support is in place for consumers who may need it right now," continued Ms Flint.
Meanwhile, the CML has claimed that its warning that net lending could halve in 2008 compared with 2007 played a key role in the Bank of England's decision to offer a new liquidity scheme to banks.