Mortgage Money IS Available Despite BoE Warning

A pessimistic report from the Bank of England suggesting that mortgage lending is likely to contract further over the next few months has been given a cool reception by the Cambridge Building Society.

The Bank’s latest Credit Conditions Survey claims that lenders’ continuing inability to access wholesale funding -the process where banks lend to each other at preferential rates - may well lead to further restrictions on mortgage products.

However, Roy Badcock, Head of Corporate Affairs from the Cambridge Building Society has responded by saying that the Society has plenty of funds available for borrowers and has it no plans to reduce the availability of mortgages or reduce its portfolio of mortgage products.

“We are very much open for mortgage business,” says Roy.  “While other lenders may rely on wholesale markets to fund their mortgage books, this is not the case for the Cambridge Building Society.

“The vast majority of funds we have available to lend come directly from our savers so we are not exposed to the challenges of the wholesale market as some other lenders.”

There is no doubt that borrowers looking for good mortgage deals have much less choice available to them now.  For example in 2007, there were almost 31,000 mortgage products available to borrowers.  That figure has shrunk to around 4,800 at the moment.

“If the Bank’s predictions are correct”, adds Roy. “Then in national terms borrowers could find themselves with even less choice.  However, the local picture, as far as we are concerned is that we have no shortage of funds and competitive products available for people looking for mortgages.”

Notes to editors:
For further iformation, please contact: Damion Clark, Real Public Relations, 01223 492130.