Ward, who recently became a director of the Intermediary Mortgage Lenders’ Association, believes that the only way to address the core problems of the funding crisis is to get securitisation out of the “sin bin”.
He says: “We need European-wide guarantees and they need to be explicit, not implicit. It would be nice to see a Freddie Mac or a Fannie Mae institution across the continent.
“There is substantial stock out there with arrears building up, creating significant problems. At least it is on the Government agenda but it has to make sure it addresses the causes and not the symptoms of the credit crunch.”
Checkmate Mortgages executive chairman Stephen Knight says: “I can see the merits of a European Freddie and Fannie but we would need European-wide action from the authorities working in unison and the chances of that happening are very far-fetched.”