The Bank of England is to provide a further £15bn into the financial markets to ease liquidity concerns following talks between lenders and the Prime Minister.
In a 90-minute meeting with bosses at Lloyds, Barclays, HSBC and the Royal Bank of Scotland, Gordon Brown is said to have discussed a range of measures to manage the crisis in the mortgage market.
Part of the discussions are thought to include measures to ensure banks pass on interest rate cuts to borrowers.
It was also revealed the Bank of England will raise its total lending to the markets to £50bn, a rise of £15bn.
However, New Star's chief economist, Simon Ward, thinks £40bn is the sum needed to help plug the current funding gap in the mortgage market.
The Chancellor, Alistair Darling, is due to hold a separate meeting with lenders this week and Gordon Brown is to hold further discussions with financiers in the coming days.
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