FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Alistair Darling To Be Advised Not To Follow US Mortgage Route

After commissioning former HBOS chairman Sir James Crosby to look into ways of protecting and rebuilding the UK mortgage market it seems as though Alistair Darling will be advised not to go down the US route of Fannie Mae and Freddie Mac, two US mortgage agencies which handle the vast majority of US home loans.



It has been reported that the two US agencies are involved in packaging and repackaging one in every two US mortgages, selling on the parts to investors in the form of securitisation bundles. This idea has grown popular in the UK after the recent problems but on reflection it looks as though there are as many dangers as there are benefits. Many people are blaming the sale of poor quality securitisation bundles as the main reason for the US credit crisis and very wary that the same might occur in the UK in the future.



The bottom line seems to be that there is no simple answer to the ongoing mortgage market crisis and market forces will always come into play. Whether Alistair Darling decides to go down this route, looks elsewhere or decides to leave the markets to their own devices is debatable.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue