Mortgage lenders are pushing for the U.K. treasury to assist the U.K. housing market by funding new home loans, according to an article in The Times today.
The Council of Mortgage Lenders (CML) released a private submission that it had made to a Treasury-sponsored review of financing for property purchases.
The CML wants the Treasury to push ahead with a plan that it claims would reopen the RMBS and covered bond markets.
Under the CML's plan, lenders would securitize high-quality new mortgages and sell the securities to investors such as other banks and fund managers. The buyers would then have the opportunity to use the securities as collateral on loans from the Bank of England.