Cheaper mortgages through quantitative easing
Monday 10th August 2009
The Bank of England Monetary Policy Committee (MPC) are attempting to lower the cost of borrowing money and lower mortgage loan costs by topping up the economy some 50 billion pounds.
This further extension of quantitative easing reinforces the belief the Bank is concerned that the economy is not recovering, despite signs of a recovery in the housing market and an increase in mortgage lending .
The director general of the British Chamber of Commerce, David Frost, reported that although the Bank is confident that quantitative easing is working, more needs to be added to thaw out the mortgage market .
Mortgage loans in the UK have been more stringent in their acceptance criteria for both commercial and residential borrowing.