Industry underwhelmed by Crosby report

Stuart Law, managing director of property investment specialist Assetz, said the report reached no useful conclusions whatsoever, and did not give any suggestion of the viability of Government intervention.

Steve Cox, operations director of Spicerhaart Financial Services, argued it was not ideal that the market would have to wait a further three months for concrete recommendations when urgent measures were needed now.

He added: “The prediction that mortgage intermediaries will be cut out of the market, as lenders return to distribution through their own branches, is extremely worrying. Brokers are unbiased and play an essential role in sourcing the best prices and products for consumers, giving them a more competitive and suitable deal.”

The Council of Mortgage Lenders responded by urging the Treasury to work urgently on measures to address the mortgage funding gap. Michael Coogan, director general of the CML, commented: “Without action, the situation in the housing market will be worse than it needs to be. The housing correction will overshoot, and the knock-on effects on the wider economy will be significant.”

The Association of Mortgage Intermediaries (AMI) said it was disappointed the report did not go further with its recommendations.

Chris Cummings, director general of AMI, added: “We are rapidly approaching the first anniversary of the closure of the wholesale money markets and, with little new liquidity coming into the mortgage market, consumers will lose-out by paying higher mortgage rates, finding access to remortgage deals cut off. As the situation worsens, we will see arrears and repossessions increase. To deliver a stable mortgage market, it is now time for decisive leadership from the Treasury."