Bank bailout plans unveiled - commercial mortgages

19 January 2009

Extra support for lenders has been announced by the government to help shield them from the effects of the economic downturn.

Ministers have unveiled a "comprehensive" raft of measures aimed at supporting financial institutions through the recession.

The Treasury has revealed that protection will be offered on the assets that have been "most affected" by the credit crunch, while the Bank of England's liquidity help for lenders is to be enhanced.

And the credit guarantee scheme available to banks is being extended in a bid to boost confidence and aid them through the slowdown.

If the measures result in lending becoming more readily available, they could be beneficial for those seeking commercial mortgages.

But Liberal Democrat shadow chancellor Vince Cable criticised the moves, commenting: "What has happened to the £37 billion of taxpayers' money that's already been given to the banks?"

However, Mr Cable noted that there has been an "extreme crisis" in the economy.