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.”