22
Sep
AMI welcomes liquidity deadline extension
The extension of the Bank of England's Special Liquidity Scheme
(SLS) has been welcomed by the Association of Mortgage
Intermediaries (AMI).
Chris Cummings, AMI's director general, said that the move would
"help provide much needed finance" to the mortgage market.
But he said that the volatility in the sector was also due to
broader issues and added the SLS extension is a "stop gap measure"
at best.
Mr Cummings called for more "structural support", saying the SLS
extension should be used to tide the market over until "more
wide-ranging measures are introduced".
The Bank of England has extended the deadline for high street banks
to make use of the SLS, pushing the cut-off date back to January
30th.
According to the Bank, this means lenders should be able to access
liquidity in an "orderly" manner and gives them more flexibility in
the wake of the demise of Lehman Brothers.