UK Chancellor of the Exchequer Alistair Darling today announced plans for a working group to examine ways to improve the UK’s mortgage-backed securities market and mortgage lenders’ ability to access secondary market funding, after credit market disruption all but closed the market.

Darling, presenting his first Budget since becoming Chancellor last June, said of the mortgage sector that it is “imperative that lenders have access to stable and low-cost funding so that mortgage rates can come down as soon as possible”.