The keenly-awaited Treasury-commissioned review of mortgage finance, published in the next few days, will disappoint housebuilders and lenders hoping for an early end to the freeze in the home-loans market.

The review, being carried out by former HBOS chief executive Sir James Crosby, was commissioned by Chancellor Alistair Darling in April. Its terms of reference were to 'consider options for improving the mortgage-backed securities market, including measures aimed at broadening the investor base for mortgage-backed securities and improving the robustness of the market'.

However, Crosby’s initial report, due in the next 10 days, will merely outline the problem, without offering solutions.

Officials said there was no 'magic bullet' that would revive the wholesale-funding markets on which the lenders relied before the credit crisis.

Sunday Times, Financial Times