Savings inflow to banks and building societies is holding up but may still not be sufficient to maintain a flow of lending that would lead to a more normal market.
Such is the assertion of Sue Anderson, head of member and external relations at the Council of Mortgage Lenders, who added that in an environment where interest rates were low, it was increasingly difficult to increase this flow.
"We would still like to see the government proceeding more quickly than it is currently doing to implement some of the Crosby recommendations that were highlighted in the pre-Budget report," she stated.
Sir James Crosby, deputy chairman of the Financial Services Authority, released a report in November 2008 that advised the government on ways to improve the function of mortgage finance markets.
Among these recommendations, he stated that intervention that addresses the closure of mortgage-backed funding markets could increase competition and improve the availability of mortgage finance for homeowners and those looking to step on to the property ladder.
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