Bank of England moves to aid mortgage lender

The Bank of England said on Friday that it would provide a liquidity support facility for Northern Rock, a UK mortgage lender.

This is the first time that the Bank has taken up its role as lender of last resort since gaining independence in 1997.

The Bank said: "The decision to provide a liquidity support facility to Northern Rock reflects the difficulties that it has had in accessing longer term funding and the mortgage securitisation market, on which Northern Rock is particularly reliant."

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