A plan to provide up to $300bn (€191bn, £150bn) in government guarantees for refinanced mortgages will be ready by the beginning of October, Steve Preston, the US housing secretary, said yesterday, in an attempt to defuse fears that a funding shortage might delay its implementation, writes James Politi .

A key element of the massive housing bill expected to be signed last night by President George W. Bush would expand the Federal Housing Administration, the government insurer for low-income housing, by giving it more powers to refinance home loans at more affordable rates.