Government support welcomed - buy to let mortgages

20 January 2009

The government's package of support aimed at bailing out banks and boosting confidence in the financial sector has been hailed by representatives of the mortgage industry.

Michael Coogan, the director general of the Council of Mortgage Lenders, welcomed the measures that were outlined by ministers yesterday.

He praised the government for creating a support package that is "sufficiently large in scale to have an impact on improving the flow of new lending".

But he added: "The devil will be in the detail and there will be a great deal to work through."

Included in the measures are plans to protect the assets of banks and extend the credit guarantee scheme, which could boost the homeowner loan market, including buy to let mortgages.

The moves were also welcomed by the Royal Institution of Chartered Surveyors, which stated they could represent an "important" first step towards normal conditions in the housing market.