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Lack of backing means mortgage study faces axe

Cicero Consulting says it will almost certainly have to shelve plans for a £100,000 study into the effect of Government inaction on the mortgage market after a lack of lender support.

The company recently announced a drive to raise money to fund a study by Oxford Economics to illustrate what Government inaction would do to the mortgage funding market.

Director Iain Anderson says although there was initially resounding support for the plan among lenders, particularly two big high-street names, the money for the research did not materialise.

Anderson says: “To put it into context, £100,000 is less than one average mortgage. We needed the lending industry to come together as one cohesive voice above the cacophony of noise that surrounds this issue.

“To influence the pre-Budget report and Crosby’s report, we needed to have started this survey already. Now we will not change the mind of this Government.”

Mortgageforce chief operating officer Kevin Duffy says: “Bombastic predictions are not going to fix the mortgage market, action needs to be taken and that means getting the Government and tripartite authorities to sort out the liquidity crisis – and we have to do it ourselves.

“Yes, it will cost the taxpayer but hopefully the money will find its way into innovative mortgage products, not balance sheets.”

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