Lenders say Bank plan will ease strains

LONDON (Reuters) - Mortgage lenders agreed the Bank of England's new liquidity plan would help tackle funding difficulties and in time would get competitive home loans on the market, the Treasury said on Tuesday.

Chancellor Alistair Darling met representatives of the mortgage industry earlier to get them to pass on interest rate cuts to their customers and help borrowers facing difficulties.

The Treasury said in a statement that the group discussed a number of areas where the government and the industry can work together to help ensure borrowers are treated fairly and helped through this period.

"The mortgage market is facing challenges as a result of the US sub-prime crisis," Darling said after the meeting.

"I welcome the arrangements that the industry has in place, and will continue to build upon, to address the concerns of borrowers in difficulty. I hope that lenders continue to take their responsibilities towards customers seriously."