Wednesday, December 05, 2007

Mortgage Lenders Beg For Help

The Council of Mortgage Lenders (CML) are begging the government to "urgently" support homeowners who are struggling to pay their mortgage, and restore confidence in the financial system.

CML's director general, Michael Coogan, spoke at the annual conference and said that increasing support for struggling mortgage borrowers is one of the key issues the government must face to encourage home ownership as confidence continues to falter.

Quote:

"The government needs to recognise and act to address the shortfalls in the safety net of state support for mortgage borrowers in most financial difficulty.

Waiting nine months for partial support is simply not good enough to help sustain home ownership
."

The CML also noted that confidence in the mortgage market and wider financial system has been badly hit by the turmoil of recent months, and said that both lenders and the authorities must work to restore trust in the system.

Maybe so.

However, much of the confidence in the financial system has been eroded by the financial service providers themselves; viz:

-Excess bank charges
-Excess charges for credit and mortgage arrangement fees
-The endowment scandal
-Northern Rock
-PPI scandal
-Cold calling to sell unnecessary financial products and services
-Sub prime lending
-The self inflicted liquidity crisis etc

It is down to the financial service providers, who have destroyed the credibility of the financial services industry, to restore confidence in it.

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