Calls made for government to "unblock" mortgage market

The sustained closure of the securitisation market is holding back the housing market, the Council of Mortgage Lenders (CML) says.

Commenting after the publication of the Bank of England''s (BoE''s) mortgage approvals data for October, director general Michael Coogan said that the housing situation was "not as bleak as some … would suggest".

BoE unadjusted figures showed that the number of mortgage approvals had fallen by 4,000 from September to 92,000.

Mr Coogan remarked that this was normal for the time of year though he conceded that the market was slowing slightly.

"Even so, we would like the government and the BoE to consider how best to unblock the funding logjam that some UK lenders are experiencing, so that they can continue to fully meet consumer demand," he added.

The total net lending to individuals in October was £8.8 billion, the BoE said, below the previous six-month average.

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