The Chancellor to help housing finance market

Grovelawn Financial News 09/09/2008

← US Government rescues ailing lenders | News For September 2008 | Value of auctioned homes down by 25% →

Mr Darling to announce new measures soon

According to some government officials, the Chancellor Alistair Darling, is about to intervene in Britain’s housing finance market crisis. He is waiting for the former chairman of HBOS, Sir James Crosby, to submit his final proposals to help rejuvenate the housing market; these should be ready by the end of September.

One of the most important proposals will be to renew or further extend the Bank of England’s Special Liquidity Scheme (SLS). Another proposal to be put forward is to create a government guarantee for high quality mortgage securities. The Council of Mortgage Lenders said in a letter to the Chancellor that it hoped “an early announcement of the renewal/extension of the Special Liquidity Scheme and any other measures being planned will help to resolve market uncertainty”.

The Chancellor is said to be considering a multi-billion pound scheme for the Government to temporarily guarantee high quality mortgage backed securities. The Bank of England, however, has opposed a widening of the liquidity scheme to accept lower quality collateral.

← US Government rescues ailing lenders | News For September 2008 | Value of auctioned homes down by 25% →

Related Articles

Grovelawn Financial Services, Gemini house, Hargreaves Road, Swindon, Wilts, SN25 5AZ — T: 0845 458 2633 — F: 01793 706 533 — E: enquiries.ignore@grovelawnfinancial.remove.co.uk