The Council of Mortgage Lending (CML) has said that the new coalition government in the United Kingdom should look into the mortgage funding issue.
Michael Coogan, director general of CML, made his comments after the publication of its gross mortgage lending data for the month of April, which showed a drop of 12 percent compared to March.
He said it is still unclear how the new government will solve the funding gap, which is set to emerge in the mortgage market over the next few years.
“Unless funding issues are addressed, any recovery in lending may well be curtailed as the repayment date on the support schemes gets closer," said Mr. Coogan.
In his opinion, the Conservative-Liberal Democrat coalition must "grasp this nettle."
Recently, CML revealed that there were 45,000 home purchase loans agreed in March, more than 25 percent over the previous month, while the number of first-time homebuyers increased 27 percent during that period.