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CML Director General Speaks to Parlimentary Group
Speaking at a Debt and Personal Finance All Party Parliamentary Group meeting, the director general of the Council of Mortgage Lenders, Michael Coogan commented on the government’s special financial provisions designed to ease the effects of the credit crunch.
"If it is used widely, as I expect it to be, and extends to over £50 billion in asset swaps by banks and building societies, we think that some of that money will be recycled responsibly into the mortgage market. However, it was not the Bank's main intention or aim. This possible outcome of recycled funds is also uncertain in terms of scale and timing."
Fears remain that the injection will have little impact on the declining housing market and Mr Coogan’s opinion would appear to be inline with the view expressed by Mervyn King to the Treasury Select Committee a day earlier.
