CML news & views

The recent interest rate cut by the Bank of England was unprecedented. And so was the reaction to it. We anticipated the question about "passing on" the rate cut, and sought to put it into a proper context. A number of commentators, meanwhile, were uneasy about how the government reacted to the rate decision.

As the economy moves into recession, mortgage arrears and possessions are set to rise. So far, the government has announced a modest range of measures to help borrowers in difficulty, including a mortgage rescue scheme. However, the forthcoming pre-Budget report represents an opportunity to provide more help as conditions are set to worsen.

A recent court case has fuelled speculation that a lender could sell a home without first obtaining a court order for possession of the property. We are therefore asking members to re-state that this does not happen in typical owner-occupier cases.

Estate agents say there are few signs of improvement in the sluggish housing market. Sales are slow across the country, particularly in London. One encouraging sign, however, is that sellers are becoming more realistic about prices.