The Bank of England has announced the start of the new Funding for Lending Scheme (FLS) designed to boost lending to households and businesses.
The plan is to allow banks and building societies to borrow cheap money from the Bank of England for up to 4 years. As security against that lending, banks will provide assets, such as business or mortgage loans, to the Bank of England.
Banks will have strong incentives to boost lending, by lowering interest rates and increasing the availability of business loans and mortgages. The more that they lend, the more they can borrow from the Bank of England.
Banks and building societies can initially borrow Treasury bills up to 5% of the amount they currently lend and they will be charged just 0.25% interest. If they decrease lending, the interest rate will increase by up to 1.5%.
The Bank of England will publish data on the usage of the FLS along with lending data from the participants on a quarterly basis.
The British Bankers Association are positive about the scheme: "The UK's lending market is very competitive - and with support through schemes like the FLS for even lower cost borrowing, now is a very good time for UK businesses and individuals to speak to a bank about their financing needs.â€
Trinity Financial provided comment to the BBC as it ran with the FLS scheme as the lead business story: http://www.bbc.co.uk/news/business-19068444
August 3, 2012
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
To arrange a meeting with one of our expert mortgage advisers complete our enquiry form or mortgage questionnaire and we will call you back. Please note, by submitting this information you have given your agreement to receive verbal contact from us to discuss your mortgage requirements.
You voluntarily choose to provide personal details to us when submitting an enquiry. Your information is confidential and held in accordance with the appropriate data protection requirements. Read Trinity Financial's privacy policy.
We believe that working together is the best way to gain trust, reliability and certainty.
Excellent service from David. Available. Quick responses. Flexible. My situation wasn’t the easiest and David took...
Excellent service from David. Available. Quick responses. Flexible. My situation wasn’t the easiest and David took the time to double check with banks their conditions prior to get me my agreement in principle. Highly recommended. Mortgage was quick and easy, I was able to focus on the conveyancing part.
More
Less
MichaëlMar 19 2024
My 7th remortgage experience with Anthony and the Trinity team - they're the best - great advice, products and services...
My 7th remortgage experience with Anthony and the Trinity team - they're the best - great advice, products and services.
More
Less
Dave SaucierMar 05 2024
Sophie and Liam were absolutely amazing in getting us the best rates, submitting paperwork quickly and answering all the...
Sophie and Liam were absolutely amazing in getting us the best rates, submitting paperwork quickly and answering all the questions we had very quickly, so we always knew where we stood - which is so important when buying a house. We couldn't recommend them enough!
More
Less
Rita NevesMar 01 2024
15
years' experience
Over the last 15 years we have helped thousands of clients to purchase new homes, secure buy-to-let mortgages and remortgage.
23
mortgage experts
Trinity’s experts will do everything possible to secure the fastest mortgage offers while providing you with regular progress updates.
17,043
mortgages arranged
We consistently arrange fantastically priced fixed and tracker rate mortgages through the leading banks and building societies.