PRESS RELEASE

Two factors yesterday helped the property market interest rates down to 4.5% and The Government assisting many UK Banks to help the property maket.

The UK government has announced a package of measures aimed at rescuing the banking system that makes available £400bn ($692bn) of fresh money.

It will initially make extra capital available to eight of the UK's largest banks and building societies in return for preference shares in them.

It is "designed to put the British banking system on a sounder footing”.

The key points of the plan are: Bank.

Banks will have to increase their capital by at least £25bn and can borrow from the government to do so.
An additional £25bn in extra capital will be available in exchange for preference shares.
£100bn will be available in short-term loans from the Bank of England, on top of an existing loan facility worth £100bn.
Up to £250bn in loan guarantees will be available at commercial rates to encourage banks to lend to each other.
To participate in the scheme banks will have to sign up to an FSA agreement on executive pay and dividends.

It is hoped that the deal will get the money markets going again and assure the future of the banking system. The deal has also been welcomed by the banks.

"The government's announcement represents a very real and serious intention on the part of the authorities, following consultation with the banking industry, to bring stability and certainty to the UK banking system, Barclays, Lloyds TSB and RBS also issued statements welcoming it.