BUDGET 2009: Government to guarantee securities backed by mortgages

Chancellor Alistair Darling announced today that following state aid approval it will guarantee securities backed by mortgages.

He says the housing market is also being held back by a lack of mortgage credit.

He says: “The government has taken action to encourage an increase in mortgage lending – and this year, the major UK banks will increase the availability of mortgages by around £20bn.

“To build on this, today I can announce the introduction, following state aid approval, of the scheme to guarantee securities backed by mortgages – which will help to ease the flow of mortgage finance.”