The Council of Mortgage Lenders (CML) has published its response to the consultation on the proposed homeowner mortgage support scheme, arguing the Government should guarantee the total deferred interest deferred by the borrower for up to ten years.
Under the current plans, some borrowers would be able to defer a proportion of their interest payments for up to two years, with the Government underwriting a proportion of the lender's ultimate risk of loss. While the CML welcomed the plans, it warned a number of structural and operational questions had to be addressed, which may have a significant influence on the attractiveness and take-up of the scheme by both borrowers and lenders. It suggested that if the Government covered the entire deferred interest accumulated, it would remove the risk of lenders feeling they have to seek reposs...
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