Bank plan gets cautious welcome
Government plans to help free up the UK mortgage market have received a cautious welcome, it was revealed today.
The Bank of England is getting closer to announcing a lending programme that should make it easier for banks to lend to each other, the BBC says.
Suggestions that a scheme could allow lenders to swap mortgage-backed securities for short-dated government bonds got the backing of the Conservatives and some brokers.
"There are thousands of people facing the prospect of real hardship because they cannot find mortgage deals to re-mortgage onto, so unblocking the financial system I think is a very important step," shadow chancellor George Osborne told BBC Breakfast.
(Article continues below)Advertisement
"If the government comes forward with a sensible idea, and I'd urge them to get on with it because after all we've been dealing with this problem now for months and the dithering is not helping anyone, then we will support it."
Outspoken deputy leader of the Liberal Democrats Vince Cable agreed on the need for action, but remained fearful that the taxpayer will continue to finance banking sector losses.
A plan could be launched as early as next week.
