19
Jan
Government announces more help for banks
The Treasury is announcing a new package of measures today to help
underpin the UK banking sector, with the intention of stimulating
more lending.
Plans include extending the drawdown window for new dent under the
Credit Guarantee Scheme, a new asset-backed securities facility, a
capital and asset protection scheme for banks and pushing back the
maturity date for the Bank of England's Discount Window Facility
that allows banks to swap less liquid assets for those that are
more liquid.
One change that may have a very direct effect on mortgages is that
nationalised Northern Rock is to no longer pursue a policy of
running down its mortgage book, something that could help increase
the supply of such deals.
The moves come after a number of stakeholders in the property
industry said that more should be done to help increase
lending.
Last week Royal Institution of Chartered Surveyors spokesman Ian
Perry argued that the government should "provide guarantees for the
new issuance of residential mortgage backed securities" to help
increase the flow of finance.
