The BOE will just sit on the securities. It is a clever scheme with essentially little or no risk to the tax payer. Despite what the politicians say, it has been designed personally by the Governor of the BOE just to prevent a solvent bank from going out of business for liquidity reason. It will have little or no impact on the mortgage market and is designed to be that way through the high fees charged. The BOE wants the housing market to come down naturally to where it should be without the effects of the lending frenzies that were prevalent (htough not as bad as in San Diego!
