CML welcomes cash injection

Thu, 20 Sep 2007

The Bank of England's announcement that it will be injecting cash into maturity funds, including mortgages, has pleased the Council of Mortgage Lenders (CML). Three-month maturity funds will receive a £10 million boost from the Bank of England, which according to the Council of Mortgage Lenders is good news for those with mortgages.

Council of Mortgage Lenders director general Michael Coogan commented that big mortgage payments were on the horizon.

"This is good news for lenders and for their customers, particularly those with mortgages linked to Libor [London inter-bank offered rate] for whom hefty increases in payments were looming," he remarks.

According to the Council of Mortgage Lenders, the move will restore confidence in the inter-bank lending market and indicates that the Bank of England has registered that lenders must have the liquidity they need.

In other news today, Katie Tucker of John Charcol has commented that tracker mortgages or discount mortgages could be the right loans to choose in the current financial climate.

Those with a tracker mortgage could benefit from a decrease in interest rates, she said.

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