Yesterday, investors finally had something to cheer about and prospective mortgage applicants will have been pleased as well. With the government’s announcement that it was bailing out three high-street banks with a £37 billion rescue package, shares in the FTSE 100 soared by over 8 per cent in its second largest one-day gain.
This is good news for the housing and mortgage market too, as experts predicted that house prices should stabilise and the rescue package will mean the banks can return to cheaper mortgage packages, helping first time buyers and remortgagees alike.
Despite some reservations from the general public about the government investing taxpayers money into banks, they will no doubt be pleased that this will spell the end of huge ‘fat cat’ bonuses and the start of a pledge to lend to small businesses and house owners again.
Mortgage advisors will also be pleased to hear the news as it makes their job a little easier. Those undergoing CeMAP training at the moment, should be completing their Competent Advisor Status next year.