Plan to boost mortgage markets

Posted: 06 Mar 2008 10:35:07 GMT


            Property News - Plan to boost mortgage markets

There are hopes that the wholesale mortgage markets in the UK could be revitalised by a plan drawn up by Alistair Darling.

There are hopes that the wholesale mortgage markets in the UK could be revitalised by a plan drawn up by Alistair Darling.

It is being widely reported that the chancellor intends to introduce a kite mark system for the best mortgage deals.

The idea is to return some confidence to investors, many of whom have stopped buying mortgages from high street lenders as a result of the global credit crunch.

Investors have become wary about taking on the risks of banks and this has led to a downturn in cheaper funding for lenders.

Borrowers have had to endure higher mortgage rates as a result but Mr Darling's plan could revitalise the markets by encouraging investors back.

Mortgages that come with a kite mark, or gold standard, will be seen as 'safer' investments and should attract some interest.

The hope is that increased investment will lead to cheaper funding for lenders, with the savings passed on to borrowers through reduced mortgage rates.

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