The plans proposed by Alistair Darling to help lenders grant more new mortgages have been met with strong disapproval from Bank of England Governor Mervyn King, reports IFAonline.

The Chancellor had planned to expand the Special Liquidity Scheme to give further finance to banks and building societies in the wake of the credit crunch.

After recent hopeful reports of this alleged extension, this will disappoint first time buyers and those hoping to find the best remortgage deals.

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