'Very little' ministers can do to improve homeowner lending market
Date posted: 11 Jun 2009
The government can do "very little" to reduce the risk of homeowners having their property repossessed, according to the Homeowners Advice Centre.
Mortgage approvals have continued to fall despite the billions that the government has pumped into the money markets to stimulate lending, according to Chris Jenkins, co-owner of the advice service.
Figures from the Council of Mortgage Lenders (CML), published in May, indicate that there were 2,800 more repossessions by mortgage lenders in quarter one than in quarter two.
The government can do "very little" to reduce the risk of homeowners having their property repossessed, according to the Homeowners Advice Centre.
Mortgage approvals have continued to fall despite the billions that the government has pumped into the money markets to stimulate lending, according to Chris Jenkins, co-owner of the advice service.
Figures from the Council of Mortgage Lenders (CML), published in May, indicate that there were 2,800 more repossessions by mortgage lenders in quarter one than in quarter two.
Mr Jenkins warned that this drop has continued despite the increase in liquid funding from the government.
He said: "This has already demonstrated that there is very little the government can do to force banks to lend money, apart from becoming a bank itself and handing out money on the high street."
There should also be a clear differentiation between customers that are "unwilling to pay" and those that are "unable to pay" their mortgages, Mr Jenkins added.
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