Mortgage lenders attack the UK government
The confirmation that mortgage business fell by 60% to an eight year low last month has prompted a vicious attack on the UK government by the mortgage industry. The mortgage industry leaders believe that while the UK government has hit the headlines with demands that liquidity is increased, their position is being constantly undermined by the National Savings and Investments company which is offering significantly higher savings rates than those available on the UK high Street.
With the worldwide money markets still struggling, UK banks are depending more and more upon customer savings to fund their operations on a daily basis. However, they have seen a significant amount of funding removed and placed with the National Savings and Investments company, thereby weakening their position and their ability to increase liquidity in the mortgage market. So what next for the UK mortgage market?
UK mortgage lenders are stuck between a rock and a hard place, unable to increase savings rates which would attract more funding and also unable to increase liquidity in the mortgage market because of reduced savings. Quite how this dilemma will pan out in the long term remains to be seen but the longer the property market is starved of vital capital the longer the UK recession will last.
Share this..
Related stories
The great energy voucher trick
When will the government ever learn? We see them in the press suggesting that things are afoot to take the pressure of those in most need, but then silence.
The latest scheme to hit the skids is the much vaunted energy payment voucher which was supposed to see those at the bottom end of the income scale receive a £100 money off voucher against their energy costs. While this is on...
More money for energy saving home improvements scheme
07/10/2014 The Green Deal Home Improvement fund will receive an extra £100 million funding, a government minister has today announced. Energy secretary Ed Davy has pledged extra money for the Green Deal, which is aimed at encouraging energy saving home improvements. The scheme offers cashback and incentives on items such as double-glazing, insulation and boilers. People were invited to...
Read MoreGrab that fixed-rate mortgage before it disappears!
If you believe the headlines in the UK mortgage sector it would appear that there are various offers available on a regular basis with attractive fixed interest rates. However, it has emerged that the average shelf-life of a fixed-rate mortgage offer in the UK at this moment in time has fallen from 23 days to 14 days. Cynics believe that mortgage companies are using these short-term offers to grab...
Read MoreAgents 'not applying for Hips before selling homes'
Some estate agents are neglecting to apply for Home Information Packs (Hips) until after they begin advertising a property, the BBC reports.According to new research from the Law Society, pressure from sellers who do not wish to pay the £300 required for the packs cause this delay.This apparent consumer antipathy to Hips - which became mandatory for all home sales last year - seems to have been s...
Read MoreDoes Alistair Darling want to come clean over spending cuts?
There is growing pressure on Alistair Darling today to step forward with a definitive plan for the reduction of the UK budget deficit which is forecast to be around £175 billion from the tax year 2009/10. There is also a growing belief that Alistair Darling wants to step forward with detailed plans, some of which will not be attractive to UK voters, but he has been stopped in his tracks by the Pr...
Read More