Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

UK asset backed scheme fails

Staff Reporter 1 minute read

A government scheme to kick-start the UK mortgage market is not working, MPs have said.

The £50 billion ($104 billion) asset-backed scheme, announced in the country’s budget, provides guarantees on lenders' mortgage-backed securities – a step that enables them to sell on mortgages to investors, raising new money to lend to consumers.

But restrictions on which institutions can take part, and the types of loans that it covers, meant that it had so far experienced limited success, the MPs said.

Latest figures show that mortgage lending picked up in May. But the number of home loans was still 28 per cent lower than a year ago, according to the Council of Mortgage Lenders (CML).

UK asset backed scheme fails
default
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

default

 

more from the adviser
ASIC TA ASIC levy reflects ramped up enforcement: FBAA

ASIC’s raised industry funding levies reflect higher enforcemen...

money piggy 2ad3 Lockdowns threaten business loan demand: Equifax

Construction and retail trade have fuelled business loan growth i...

mortgage money house 48% of home loan applicants frustrated by paperwork

The majority of Australian borrowers think applying for a home lo...