Commenting on today's Pre-Budget Report by the Chancellor, Adrian Coles, Director-General of the BSA, said:
Lending Panel and Crosby Review
"The BSA welcomes the establishment of the Lending Panel by the Government, and we look forward to contributing to its work. We share the Government's commitment to reduce the numbers of people losing their homes through mortgage repayment difficulties. The commitment not to commence repossession action until at least three months after an account has gone into arrears reflects standard building society practice.
"The much anticipated publication of the Crosby Report is also to be welcomed. Government guarantees of new mortgage securities will help to ease the future funding of mortgage loans. However, increased competition from National Savings and Investments (reflecting sharp increases in Government borrowing) will affect societies' ability to raise funds.
"We welcome the opportunity for building societies to be involved in the Saving Gateway scheme. The BSA has been working with HM Treasury on the development of the scheme and we believe it should be as simple as possible, minimising the administrative burden and reporting requirements.
~ Ends ~
Notes to Editor:
1. The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £235 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 37% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
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