The mortgage industry slammed the government for misunderstanding the crisis facing the housing market, as Chancellor Alistair Darling announced another spate of ‘consultations’.

thisismoney.co.uk – Lucy Farndon, Daily Mail -13 March 2008

The Treasury outlined two key problems – the lack of liquidity in the wholesale markets which fund many mortgage loans, and the lack of availability of long-dated mortgages to provide certainty to homeowners on interest rates.

But, as is often the case, the Budget contained nothing that would chance the status quo. A ‘working group’ will be established to examine possible ‘market-led initiatives to help improve the mortgage-backed securities market’.

Michael Coogan, director general of the Council of Mortgage Lenders, said: ‘There was little of immediate concrete substances for the housing or mortgage markets in this Budget. While there may prove to be benefits in the long term, the Chancellor ducked the pressing nature of some of the issues that are facing the markets right here and now.’ – full article