BSA comments on 2008 pre-Budget Report

"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.

Saving Gateway

"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.