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Will Crosby’s plan help the market?

The Crosby report has finally been published and the industry has spoken.

Recommendations that the government guarantee mortgage-backed securities, suggestions that net mortgage lending will fall into sub-zero territory next year and predictions that brokers will all but disappear from the market have the industry up in arms.

Commissioned in April 2008, the report was finally published as part of a radical pre-Budget report in which chancellor Alistair Darling announced a 2.5% cut to VAT, deferred taxes for small business and increased spending on schools, hospitals and roads to create jobs.

He also created a panel of mortgage lenders and trade bodies to review the market and monitor banks’ lending levels and practices.

The mortgage industry seems pleased with the fact that Sir James has pushed for government intervention but many feel it’s too little too late. The government still has to chase the European Union for approval of the plans in advance of next year’s Budget.

So we asked leading industry figures what they think about the proposals in the Crosby report.


Mortgage Monopoly is the name of the game in 2009

Share prices picked up in the week following chancellor Alistair Darling’s pre-Budget report as did the value of sterling, but this probably owed more to the US bailout of troubled Citigroup on fairly relaxed terms and clarification of president-elect Barack Obama’s new Treasury team than our own chancellor’s borrow and spend gamble.

Base rate drops to 2%

The Bank of England has slashed the base rate to 2% a level not since 1939.The last cut, an emergency 1.5%, was intended to stimulate spending and stave off recession.Adrian Coles, director-general of the Building Societies Association, says: “Homeowners will welcome the MPC’s decision to cut the Bank Rate by 100 basis points to 2%. […]

Merger rules changed to protect society deposits

The Financial Services Authority has modified regulations to allow merged building societies to be covered by deposit protection compensation as separate entities.

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The lucky ones

By Denise Wond, Marketing Relationship Manager, Royal London Do you consider yourself lucky? I don’t; I never seem to win a prize in the raffle, if there’s a cancelled train it’s usually the one I’m meant to be on and don’t start me on last year’s holiday. On the other hand, when I think about […]


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