Those without a mortgage and trying to buy a house and also those with a mortgage worried about being able to remortgage will be watching the latest government plans very carefully and no doubt wondering how this will affect them.

Currently, getting a mortgage can be quite difficult and only those with great credit and a large deposit, generally of 20 per cent or more, can get the best deals.

As the property prices continue to fall, many existing mortgage holders or homeowners now require a larger mortgage than the banks want to give in order to remortgage or to move house and so many are falling into negative equity or at best, are unable to remortgage.

The government help package last year failed to help as many banks pocketed the cash to help their balance sheet and did not pass the savings or interest rate cuts on in full, if at all in some cases.  The government hopes this second rescue package will be a different story and will help to encourage the banks to start lending again and to get the housing market started up again.

Right now, it is a little early to be seeing any positive benefits but they should start to filter through in the next couple of months.

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