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Allowing private investors to lend through legal entities will help the government tame the country's underground lending market, where annualized interest rates can reach 100 percent.
The formula is to set up a few branches, or pay astronomical prices to buy them, then use funding from your parent or from wholesale credit markets to lend through them.
In March, the Intermediary Mortgage Lenders Association, which represents firms who lend through brokers and advisers, found that 75% of brokers and 65% of lenders expected first-time buyer numbers to drop if the scheme ended without a replacement.
From the outset Santander revealed how much it had promised to lend through Merlin because it refused to sign up to the bonus part of the pact with the government.
Typically, friends and family members who lend through peer-to-peer sites are willing to do so on terms that are more favorable to the borrower than he will get from commercial lenders like Sallie Mae or Wells Fargo.
Nonetheless, last week IMF Managing Director Dominique Strauss-Kahn said the fund was ready to lend through its emergency financing mechanism, which has been used just six times since it was put into place in 1995.
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He highlighted the joint decision by ministers and the Bank of England to stop backing mortgage lending through the Funding for Lending scheme.
"PLR pays authors for lending through a local authority library.
So do cross-border borrowing and lending through stock and bond markets.
Santander, Halifax and Barclays, which lends through Woolwich, all say they will consider such cases.
Bank of America shut down its wholesale lending unit at the end of 2007 to concentrate on lending through its own branches.
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CEO of Professional Science Editing for Scientists @ prosciediting.com