Credit crunch action plan some way off -UK source

NEW YORK (Reuters) - The British government is not poised to announce any new measures to boost liquidity for mortgage lenders as there is still work to be done on proposals to ease the credit crunch, a Treasury said on Wednesday.

British media had speculated that an announcement was imminent after the Financial Times reported the Bank of England was considering allowing banks to swap mortgages on their books for government bonds.

"There is quite a lot of work still under way," said a Treasury source.

Any measures adopted would not come at the cost of British taxpayers, the source added.

Earlier, UK officials said wider collateral arrangements for banks were among a range of options being considered.

(Reporting by Sumeet Desai)

(UK Economics desk, uk.economics@reuters.com))

Keywords: BRITAIN MORTGAGES/