The Special Liquidity Scheme, announced today by the Bank of England, is unlikely to reverse the trend of rising mortgage costs seen in recent weeks, according to the Council of Mortgage Lenders (CML).
The CML welcomes the move to provide £50bn in Treasury Bills to kickstart the money markets, but says further details of the scheme need to be released. Michael Coogan, director general of the CML, comments: “The recent trend of mortgage products being removed and mortgage prices increasing for new customers will be affected more by how LIBOR responds to the announcement. “The improved liquidity is unlikely to reverse the trend to higher mortgage costs we have seen in recent weeks.” He says he hoped the scheme will bring LIBOR rates down and the high quality of UK mortgages, combined wi...
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