21
Apr
Bank's decision 'is a good one'
The Intermediary Mortgage Lenders Association (Imla) has welcomed
the decision by the Bank of England to offer £50 billion to
the mortgage market.
But the outfit did suggest that the Bank could have entered the
fray "more quickly" in the bid to aid the housing industry.
However, executive director at Imla Peter Williams argued that the
arrangement is good because service providers will be responsible
for any lost money.
And he stated that while the situation is not a perfect one it is
pleasing to see in the face of the current credit crunch.
He said: "Despite its limitations, we must regard this as a
positive step in terms of kick-starting the mortgage industry and
it should reduce negative pressures in the housing market and in
the wider economy."
This week, the Bank announced that it will trade risky mortgage
debt taken on by banks for government bonds to offer a helping
hand.