Bank of England planning to help mortgage lenders

The Bank of England is poised to intervene in the credit-starved mortgage market as lenders in the UK warn that the crisis could see a raft of smaller providers close to new borrowers, it was reported today.

The Bank is understood to be working on a plan to free-up the crunch that is crippling the UK’s mortgage sector by taking mortgage loans off lender balance sheets, according to 'The Financial Times'.