Providers of secured loans are receiving mixed messages about the steps they should take, it has been claimed.
Recent cuts in the Bank of England's official base rate have led to pressure being placed on lenders to pass on the savings to consumers.
But the Council of Mortgage Lenders (CML) noted that firms are also being told to be prudent in their lending, in order to protect themselves against losses in the future.
According to the body, the government is now recognising some of the contradictions, such as the difficulty of lowering secured loan rates while keeping savers' interests in mind.
And it called for those with secured loans to be able to market their property more easily should they need to sell, as rules regarding home information packs are being tightened next year.
"We are at the wrong stage in the cycle to be making life more difficult for sellers, particularly as some will be forced sales by borrowers in difficulty," the CML stated.
This month the Bank reduced the base rate from three per cent to two per cent.
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