Darling looks at new mortgage plan

Alistair Darling, the chancellor, is looking to revive the housing market this autumn by helping to fund new home loans, as part of a package of measures to help householders hit by the economic squeeze.

George Parker, FT.com - 27 July 2008

Mr Darling is considering extending the Bank of England scheme whereby high quality mortgage-backed securities are exchanged for government bonds, in an attempt to inject funds into the moribund housing market.

The current swap scheme applies only to old mortgage assets held at the end of 2007. Mr Darling is considering extending it to new mortgage lending.

Sir James Crosby, former HBOS chairman, is expected to moot the idea on Tuesday when he produces an interim report on financing the mortgage market.

His report will stop short of making final recommendations, and Mr Darling’s aides stress that the Treasury is working through the details of the possible scheme to make sure it could work - full article

See also: Crosby’s Report - Interim Analysis