The Bank of England will on Friday throw a lifeline to Northern Rock by providing emergency funding to the beleaguered mortgage lender that has fallen victim to the liquidity squeeze in the banking sector.

VIDEO: UK Daily View

Chris Hughes explains how the UK mortgage lender has suffered from the credit squeeze

Discussion
How worred should customers be?

In an unprecedented move, the Bank, working with the Financial Services Authority and the Treasury, will step in to bail out Northern Rock by providing it with a short-term credit line that will allow it to carry on operating.