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Protests as £50bn rescue freezes out the specialist lenders

The Council of Mortgage Lenders, the Intermediary Mortgage Lenders’ Association and mortgage brokers have slammed the Government for excluding specialist lenders from its £50bn rescue package.

The Bank of England scheme, announced this week, excludes specialist lenders and smaller building societies from getting access to the extra liquidity.

Brentchase Financial Services mortgage specialist Mike Fitzgerald says: “I do not think the Government appreciates the true role of spec-ialist lenders in the mortgage market. Those type of lenders are responsible for a lot of lending and have given a lot of help to people.”

Last week, New Star chief economist Simon Ward pointed out that £81bn of last year’s £108bn of UK net mortgage lending was funded by specialist lenders.

Imla executive director Peter Williams says: “It is important that specialist lenders, along with banks and building societies, with AAArated mortgage-backed assets will be able to swap them against Government securities. That does mean that the facility will be relatively restrictive and that lenders with non-prime packaged assets will not be able to tap this source of funding.”

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