The Council of Mortgage Lenders (CML) says the Government's plans to provide mortgage lending at 2007 levels may not be 'prudent' given current conditions in the housing market.
Conditions attached to the Treasury’s £37bn investments in RBS, HBOS and Lloyds TSB mean the banks must ensure they continue lending to small businesses and individuals; a move that may prevent a prolonged recession. The Treasury says participating institutions must maintain mortgage lending at 2007 levels for the next three years, as well as actively marketing their products. However, the CML says it would be neither prudent nor desirable to maintain 2007 lending levels in a market where house prices are falling and demand has been significantly reduced. Until the Government provides fu...
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