Government announces second round of measures to provide new lending

Banks need to use these facility’s to help breath life into the failing housing market as First time buyers and home movers continue to window shop.Right move has reported that supply remain constrained due to a falling housing market. There were 43,000 new listings in the month to January 10, compared with 89,000 in the same period last year, with inquiries rising to 429,560 in four weeks to January 10 from 199,762 in the same period last year.

The Governments second package of new measures are aimed at helping the banks provide new lending to first time buyers and home movers, shared equity and  Shared Ownership purchases. It’s this market that is suffering the worst, as lenders require a substantial deposit. With out this activity the housing market is slowly grinding to a halt.

Council of Mortgage Lenders director General Michael Coogan said: ‘At long last, the government has announced a comprehensive and coordinated package of measures sufficiently large in scale to have an impact on improving the flow of new lending.’

Northern Rock has been given longer to pay back its loan. This will give the lender more flexibility to offer new lending to help boost the economy.

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