The British government heard yesterday that there is no quick solution to the UK's mortgage problems and that the funding of mortgages over the long-term should come from the market alone.

The report, commissioned by Alistair Darling, said that there was no quick fix to the crisis which would revive the mortgage market, take the pressure off the housing market and reduce borrowing costs for consumers. Produced by the Treasury, the interim report from Sir James Crosby, former chairman of HBOS also says that mortgage lenders will probably be low in funds for a few years yet – at least until 2010.

Although this interim report states that "market-led initiatives are unlikely to help resuscitate markets quickly," Sir James has issued a warning that his final report may contain further recommendations: "I may yet recommend that the government should not intervene in the market, on the grounds that such intervention would create more problems than it would solve."