Sir James Crossby's interim report on the possible steps to revive the UK mortgage market will be published today.
London (Shakespearefinance) July 29, 2008: The treasury said yesterday that HBOS chief executive's report on the remedial financial mechanism to revive the British mortgage market will be released on Tuesday.
The Crossby report was commissioned by the UK government in April this year after there were very serious indications that paucity of mortgage finance was taking down the housing prices at a very alarming rate.
"Crosby will publish his interim report analysing the functioning of the secondary mortgage market on Tuesday, with his final recommendations to the Chancellor due in time for the Pre-Budget Report," a Treasury spokesman informed. But he dithered from commenting on those newspaper reports which gave clear hints about the government taking very ambitious plans allowing the banks and financial institutions to swap fresh mortgage debts with the governmental securities.
In April this year the Bank of England, under a 'special equity scheme', permitted the banks to change 'hard-to-shift' mortgage assets with the government securities, provided the mortgage loans existed on their balance sheets at the end of the previous year. This measure taken by the central bank was successful in—though for a while—mustering up confidence in the sector. But as far as the banking experts are concerned, they hold that more pro-active measures need to be taken to restore sufficient confidence.
Securitisation market, having more than 40 percent of the funds, is closed and its repercussions on the housing market are becoming more and more visible day by day. British Bankers' Association's figures show that number of approved mortgages for buying houses dwindled by more than two third during the month of June.
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