No quick fix for mortgage crisis
There is no quick fix for the mortgage crisis blighting the British economy, the Governor of Bank of England has warned.
The Bank will continue to support lenders, but will not help them to offer more generous mortgages, Mervyn King told the Treasury Select Committee, adding that households would also continue to feel a squeeze from falling incomes and higher prices for a range of basic goods.
The Bank plans next week to unveil its successor to the emergency funding scheme, known as the Special Liquidity Scheme, which since April has allowed ailing banks to keep lending by swapping risky mortgages for cash from the Treasury.
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