Darling in reported multibillion pound mortgage market shake-up

Chancellor Alistair Darling is believed to be planning a multibillion pound kick-start to the UK housing market, which would see the government temporarily guaranteeing high quality mortgage-backed securities.

The Times reported today that Darling is preparing to intervene to stimulate Britain’s housing finance market.

Darling is waiting to read the conclusions of the Crosby Review before he makes his move.

Mortgage Strategy exclusively revealed last week that the long-awaited conclusion of the Crosby review into possible solutions to unblock mortgage finance has been brought forward.

According to senior government officials Darling is considering options to renew or extend the Bank of England’s Special Liquidity Scheme and another to create a government guarantee for high-quality mortgage securities.

The proposals are likely to be finalised and presented in the Pre-Budget Report, expected towards the end of October.