Darling could act to save mortgage market
Tuesday, 09 Sep 2008 09:02
Darling under pressure to ease mortgage woe
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Alistair Darling could be set to intervene in the UK mortgage market to dispel the current malaise.
The Times reports a senior government official stating the chancellor of the exchequer was waiting for proposals in a report from James Crosby, the former HBOS chairman, before opting to make a decision.
Actions that could come from the Crosby Report include an extension of the current Special Liquidity Scheme (SLS) from the Bank of England and government guarantees for mortgage backed securities.
However, Mr Crosby's initial findings published in July were less than favourable.
The report stated: "It appears unlikely that an implicit government guarantee on mortgage-backed securities would be an appropriate model for the UK to adopt."
Any final deal is expected in the pre-Budget report in October.
Last week, the Council of Mortgage Lenders (CML), which represents the vast majority of the mortgage industry, wrote to Mr Darling calling for an extension of the Special Liquidity Scheme.
The government also announced a raising of the stamp duty threshold to £175,000 and proposals for government-approved sale and rent back schemes to aid those facing repossession.