BGN Entrepreneur

Crunch negotiation between a group of building societies and the Bank of England are due to take place this week in an attempt to prop up levels of mortgage lending.
Nine societies, including the Chelsea and the Skipton, were hit last week by credit ratings downgrades. It affects their participation in the Bank’s 185 million pound Special Liquidity Scheme.
The negotiations are not understood to mean that there are any risks to the financial stability of any of the nine, but it does threaten to put a dent in the Government’s plans to get the housing market moving again by boosting mortgage lending.
If the Bank deems that collateral put up by any of the participating banks or building societies is no longer good enough, it can demand that the financial institution put up new collateral. If they cannot, they would have to hand back the Treasury bills, and as a result mortgage fees could rise.

Related posts:

1. Slashed Budgets Pose Threat to Big Society
   Charities welcomed David Cameron’s plans for a big society bank...
2. Banks and Building Societies Urged to Make Cheque Plans Clear
   Banks and building societies have decided to take action...
3. New Victim in Depressed House-Building Sector
   Scotland’s depressed house-building sector has been dealt a fresh blow...
4. Jaguar Finance Still in Talks
   London Metal Exchange (LME) – the government said Wednesday, the...
5. Sign Up for Tailored Link Building Packages
   Link Building is key to improve the visibility of...