Mortgage lenders are to be told to pass on interest-rate cuts to their customers in return for easier and longer loans from the Bank of England as it tries to restore order to the housing market, The Times has learnt.
In a radical move to pour liquidity into the blocked lending markets, the Bank is preparing to tell banks and building societies that they will be able to use a wider range of assets as security for loans, and no longer have to rely on top-rated mortgage securities. The move comes amid fears that a third of British estate agents could close their doors within 12 months because of the downturn. The Bank will also follow the US Federal Reserve in offering more three-month loans to banks rather than concentrating on shorter terms. FINANCIAL MARKETS ARE bracing themselves for further s...
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