Government Step in on Mortgage Crisis

The Autumn of 2007 bought with it the loss of mortgage backed securities and in turn the slow thumb screw on the availability of sufficient mortgage and lending deals as the banks and mortgage providers ran to the hills and switched off essential deals. In turn the credit crunch has impacted the economic balance of both the domestic and business markets.

In a plan to relieve the economic crisis that appears inevitable the Government have announced they are to release £50 billion of Government bonds to release out vital mortgage deals and lending opportunities.

The release of the Government bonds will certainly be welcomed by the banks who need to fill the gapping hole left by the loss of the mortgage backed securities market which let billions of pounds of opportunity slip through their fingers.

This financial rescue package is the biggest ever scheme launched to prop up the banking system and a copy cat of a state side deal.

All this despite the fact the Bank of England has been cutting its base interest rates, worrying times for many but at least action is being taken by the treasury.