The British pound soared on the hope that the Bank of England will come and save the day. In recent weeks, the UK mortgage market has become a mess with lenders growing more stringent about how much and to whom they will lend. However he pound has rallied today as respite may be in sight. According to the Telegraph, the Treasury is set to approve and officially announce a plan that would help add liquidity to the mortgage and money markets. This plan is ground breaking because it would be a significant departure from the central bank’s typically laissez faire attitude. The initial details of the plan centers around the Bank of England taking loans over from mortgage lenders to free up capital and risk for companies like Halifax and Nationwide. This is similar to the Fed’s recent moves in accepting mortgage backed securities in return for US Treasuries and because of that, the concerns are similar as well, which is that the UK is giving up its safe and secure gilts for riskier assets.