On October 8, after a period of mass turbulence in the financial markets that saw Lehman Brothers collapse and Lloyds TSB bail out the ailing HBOS, the government announced a package of measures aimed at rescuing the UK banking system, initially making extra money available to eight of the UK’s largest banks and building societies in return for preference shares in them. As part of the package the government pledged to “maintain over the next three years, the availability and active marketing of competitively-priced lending to home owners at 2007 levels.” There has been some scepticism in the lending world as to whether this is achievable or even advisable, however. <br><br>“The mortgage market is showing no signs of recovery,” explained John Stewart, HBF’s director of economic affairs. “There’s tentative evidence to suggest that Libor rates have seen some improvement, but until we get lending back, the mortgage market can’t recover and the government’s goal of reaching 2007 lending levels just can’t happen.” At time of going to press, industry was awaiting publication of the Crosby report into the UK mortgage market. “This will be critical in aiding possible recovery,” Stewart noted. “Anything Crosby [Sir James Crosby, former HBOS chief executive …