Graded mortgages to boost market

Alistair Darling will attempt to revitalise the mortgage markets by introducing a kite mark scheme.

It is being widely reported that the chancellor will announce his plan when he delivers his first Budget on March 12th.

The scheme would see the best mortgages given a kite mark to show investors that they are 'safer' deals.

It is hoped that this will offer investors more reassurance and increase the likelihood of them buying up mortgages from high street lenders.

It is the lack of investor confidence which has led to many lenders increasing their mortgage rates as they have been unable to get their hands on cheaper funding from investors who are wary of taking on banks' risks.

However, Mr Darling reportedly hopes that the kite marking will instil confidence in investors, giving lenders cheaper funding and eventually leading to reduced mortgage rates for borrowers.

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