Banks should declare bad debts in order to boost the mortgage market and those searching for new homes, it has been suggested.
Katie Tucker, technical manager at mortgageforce, commented that financial institutions in this situation should "be forced to come forward".
She said that banks with bad debts should make their position known and "put a figure on it".
Ms Tucker stated: "For new mortgages lent, we need a more uniform valuing system for those mortgage books, so that they can be sold fairly and for a trustworthy price on the securitisation market."
She also said that securitisation markets must come back to good health within the next year, explaining that this is because these were "really what funded the specialist lenders".
Earlier this month, the Bank of England revealed there was an increase in home loan approvals towards the end of last year.
The figures showed that 60,518 new mortgages were given the green light in November 2009, compared to 57,718 in October.
See Also: Property News (6699)
Date Published: 12 January 2010
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