Government receive heated response from mortgage lenders
As the mortgage lending decreased by 60% to an 8 year low, many mortgage lenders have provoked an attack on the government.
Mortgage experts think that while the UK government demands that liquidity is increased, their position is being damaged by the National Savings and Investments Company who are giving better saving rates than the UK high street.
As the recession has fully kicked in now, more and more banks are relying on customer savings to help run their day to day business function.
The mortgage industry has seen a phenomenal amount of funding removed and given to the national savings and Investments company which has weakened their position in the mortgage market.
It can be said that the UK mortgage market is suffering big time and if savings rates were to be increased it would mean that more funding would be available for the mortgage market due to increased liquidity.
As long as the property market is starved of crucial funds, the UK recession has plans to stick around for a while.
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