Bank`s £50bn mortgage injection welcomed

The Bank of England`s decision to inject £50 billion into the UK mortgage market has been welcomed by the Chancellor of the Exchequer and a number of major industry bodies.

Under the terms of the scheme, banks will be able to swap potentially risky mortgage debts for secure government bonds to help them operate more freely during the ongoing credit crunch.

Chancellor Alistair Darling told the House of Commons that he supported the move that he hoped would "help resolve" the current problems in the credit markets.

In response to the move, the Council of Mortgage Lenders (CML) also welcomed the Bank`s decision to help both mortgage lenders and homeowners.

CML director general Michael Coogan added: "What the scheme does not do is give all mortgage lenders direct access to the new funds. In particular, it does not include smaller building societies and specialist lenders."