SIR – When I first qualified as a solicitor I was working for a local authority which was one of the largest providers of mortgages in its district. The council was able to borrow monies on a long-term basis in order to lend, particularly to first-time buyers and key workers, and at that stage much of its lending was at fixed rates.

As it was not dependent on short-term commercial loans and raised funds by mortgaging its future revenues rather than securitising mortgages, presumably the same considerations did not affect it as now plague commercial lenders.

The legal powers to reinvigorate local authority mortgage lending still exist. It is noteworthy that the Council of Mortgage Lenders last August raised concerns about restarting local authority lending suggestive of concerns as to fairness of competition with commercial products.

However, given that there is a major problem of mortgage provision and that the present situation already justifies major departures from competition policy (for example LloydsTSB/HBOS) it would seem that local authorities can and should fully take up their traditional role of supporters of housing provision in all its aspects to complement what commercial providers can currently PETER SCOTT,

Partner, for and on behalf of Parkinson Wright LLP.