The Bank of England are considering a £50 billion scheme to help the current mortgage problems in the UK. They have confirmed that they will now allow mortgage lenders to swap mortgaged assets for government bonds.
This will provide better protection to the tax payer as the only potential loss would be if the bank defaulted and the value of the bond was less that the asset mortgaged. However, if the value of the bonds fell then the bank would have to provide more assets so it is very unlikely the public will experience any loss.
Following this scheme, it is hoped that homeowners and first time buyers will achieve easier and cheaper mortgages. Fingers crossed!