Is Bank of England governor holding up recovery of mortgage market?

I wonder if central banker Mervyn King is holding up the recovery of the mortgage market in Britain. In August moneymarketing.co.uk reported that King's
"heavy-handed rejection of proposals to help the mortgage market floated by Sir James Crosby shows there is little consensus on what needs to be done in the homeloan sector".

The Bank of England governor does not want any type of guarantee as far as lending is concerned and thinks the UK mortgage market will recover on its own accord. However, this approach has been criticsed by Wave Lending chief executive Colin Snowdon, who describes the governor as an economist first, a banker second.

Linda Will, of West Country building society Stroud and Swindon, says the problem is the financial authorities are undecided on what to do and there are major divisions between themselves.

Sir James Crosby is the former boss of HBOS (Halifax Bank of Scotland), which could be swallowed up by Lloyds TSB. HBOS has 20 pct of the UK mortgage market but in terms of new lending institutions such as Banco Santander unit Abbey National have been growing fast.

The UK mortgage market will probably recover naturally and the lenders will start lending if the spectre of negative equity falls away. I think the government might have to give a helping hand to the housebuilders, whose share prices have been shot to pieces.