16
Dec
Treasury seeks lending boost
The Treasury has made changes to its credit guarantee scheme in a
bid to ease conditions for lenders, something that could help boost
the availability of mortgages.
Chancellor Alistair Darling has decided to lower the cost of the
fees institutions must pay the government for using the
facility.
The Treasury said this would bring the UK scheme in line with those
in place elsewhere.
In addition to this, the arrangements will now run for five years
rather than three, giving more time for the banks to make the
transition from guaranteed to open lending.
Responding to the news, director general of the Council of Mortgage
Lenders Michael Coogan said this could help alleviate the
"conflicting" demands placed on lenders by the Treasury.
He added: "We welcome the chancellor's acknowledgement that there
is still more that the government can do to help try to facilitate
more conducive conditions for lending."
