Mortgage lenders "eagerly awaiting" rescue plan

LONDON (Reuters) - Mortgage lenders said on Friday they were "eagerly awaiting" much needed action by the Bank of England to ease the credit crunch and reported that mortgage lending fell an annual 17 percent in March.

The CML warned last week that lending could halve this year because of the global market turmoil, unless more urgent action was taken by the Bank of England to help banks.

"Early action is needed if we are to be able to maintain a market in which UK borrowers continue to be able to access mortgage funds at reasonable prices," said CML director general Michael Coogan.

"Lending on completed transactions is currently running at levels considerably lower than a year ago. However, the picture for mortgage approvals for new business and prospective lending levels in the next few months is worsening.

"We await the eagerly anticipated announcement of further action by the Bank of England to respond to these rapidly worsening market conditions.

"As mortgage costs increase, it remains important for any borrower with potential financial difficulties to speak to their lender as soon as possible, and preferably before they have missed a payment."