30
Jul
Mortgage market report suggests difficult times ahead
Sir James Crosby has released his eagerly awaited report into the
mortgage market, which remained largely analytical but does offer a
number of proposals.
The study paints a gloomy outlook, warning that reductions in
mortgage availability could have a severe impact on both house
prices and consumer spending.
Sir James suggested that the government may have to guarantee
mortgage-backed securities if it wants to support financial
stability.
He also noted that the Bank of England's special liquidity scheme
could be extended, but acknowledged that any of these measures
could have an adverse effect.
Commenting on the report, the National Association of Estate Agents
called for swift action to be taken.
"Crosby states that he is looking 'with some urgency' at the
options for stimulating supply of mortgages. However, given the
current economic climate and the crippling effects this has had on
consumer confidence over the past few months surely this issue
should be dealt with a lot of 'urgency'," the organisation said in
a statement.
