22
Apr
More faint support for government plans
Plans by the government to boost the mortgage market are a good
idea but do not go far enough, it has been claimed.
The Association of Mortgage Intermediaries (AMI) stated that
problems in the housing market occur not just because of lack of
credit, but due to "confidence" as well.
Earlier this week, the Bank of England revealed that it will offer
£50 billion in government bonds to organisations that wish to
swap risky mortgage debt.
But director of the AMI Richard Farr responded and argued that
alternatives could be considered.
"We have produced the White Paper because we do not believe that
today's announcements, which are long overdue, go far enough," he
commented.
He added that a proper functioning market may help homebuyers at
present and in the future as well.
In related news, the Intermediary Mortgage Lenders Association also
said that while the move will boost the property market, it has
come at a late stage.