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date: 18 June 2009

embargo: For immediate release

TUC urges Government to get banks lending again

Commenting on figures published today (Thursday) by the Council of Mortgage Lenders on the value of mortgages taken out in May, TUC General Secretary Brendan Barber said:

'The Government was right to bail out the banks but now ministers must take action to get them lending again.

'The squeeze on mortgage approvals has seen many new buyers having to find deposits of up to 25 per cent before they can borrow any money. This is a major factor behind recent job losses in the finance and construction sectors.

'Mortgage lending policy has swung from being far too generous to far too stingy. The Government must use its influence with the banks to get this vital part of the economy back onto an even keel.'

NOTES TO EDITORS:

- The Council of Mortgage Lenders figures show that total mortgage lending fell by £228m in May, a two per cent drop on the £10.5 billion figure for April. Mortgage lending fell from £24,696m in May 2008 to £10,300 million in May 2008 (a drop of 58 per cent).

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Press release (400 words) issued 18 Jun 2009