AMI: Bank of England liquidity measures

The Association of Mortgage Intermediaries (AMI) has responded to today's announcement by the Bank of England to extend its loan facility.

Richard Farr, AMI Director, said: "We welcome news that the Bank of England is extending its £10bn offer of three-month loans against a wider than normal range of collateral.

"Although not a long term solution to the liquidity crisis we agree with the Banks view that the 'continuing elevated pressures in short-term funding markets' are very real, are causing significant pain to the lending industry and are having a subsequent knock on effect in the housing market.

"We would encourage the bank to consider increasing the tranche that is to be released in April as we expect this first tranche to be oversubscribed. We would also like to see the Bank support the UK in providing much needed liquidity as their counter parts have done significantly in North America and Europe."