Landlords who are seeking mortgages may have more faith in the market if banks declared their debts, it has been claimed.
Katie Tucker, technical manager at mortgageforce, said that people might begin to trust lenders more if they knew exactly what bad assets were held.
"For new mortgages lent, we need a more uniform valuing system for those mortgage books, so that they can be sold fairly and for a trustworthy price on the securitisation market,"Ms Tucker explained.
She said that it is necessary for the securitisation industry to regain its health this year, so that lenders can be funded.
By forcing any banks with considerable bad debt to reveal it, Britons may show more trust again, Ms Tucker continued.
On January 4th the Bank of England said 60,518 new mortgages were approved in November last year - almost 3,000 more than the previous month.
An increase of £1.5 billion was seen in net lending secured on properties in November, it noted.
Written by Sarah Field
Related posts:
