CML welcomes bank rescue scheme - buy to let mortgages

14 October 2008

The Council of Mortgage Lenders (CML) has welcomed the rescue package offered to banks by the Treasury.

Several organisations, including Royal Bank of Scotland, HBOS and Lloyds TSB, are set to benefit from a cash injection from public funds.

It means the government will obtain shares in the firms in exchange for capital in a bid to boost confidence in the financial sector.

The CML stated that it "wholeheartedly supports" the initiative.

Director general Michael Coogan remarked: "Lenders have been working hard to continue to deliver a flow of competitive mortgages into the market."

He added that these efforts would continue and that the CML will work alongside the government to improve conditions.

The extra liquidity supplied by the Treasury could have a positive impact for buy to let mortgages.

Meanwhile, housing charity Shelter has called on mortgage lenders to pass the Bank of England's rate cut onto borrowers.