CML welcomes Bank of England mortgage aid

The Bank of England''s new scheme to help the mortgage market has been welcomed by the Council of Mortgage Lenders (CML).

Michael Coogan, the director general of the organisation, has stated that the injection of around £50 billion of funds will help to address liquidity shortages which are "undermining the markets".

He added that the Bank has structured the scheme to ensure that lenders pay "an appropriate price" to minimise risks for taxpayers.

"The improved liquidity is unlikely to reverse the trend to higher mortgage costs we have seen in recent weeks," he added.

Recent research by the CML found that gross lending in March totalled £26.3 billion, which equates to a five per cent increase from February.

It was also found that estimated gross lending for the first quarter of the year stood at £77.2 billion, which was eight per cent lower than the figure at the same point 12 months ago.

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