funding-lending-ditched-new-mortgages

Bank Of England Stops Lending On New Loans

The Bank Of England has announced that it will be stopping the Funding For Lending scheme for new loans and mortgages. Businesses will still have access to the scheme that offers cheap money to struggling businesses.

The bank have said that they are concerned that the housing market is already showing signs of a strong recovery and that it doesn’t want to fuel the demand with further cheap money.

There have been calls from many quarters to abandon this scheme as it has contributed to the strong demand for new homes. Of course the demand is welcome but there simply is not enough new homes being built.

Help To Buy Scheme Will Continue

The Help To Buy scheme is still good for now but there has also been calls for this to be abandoned as the market shows signs of growing out of control. Many think that the scheme was ill thought through and that it could spark a crisis in the housing market.

Many are worried that the scheme is going to cause a housing bubble and that this will cause misery for many homeowners in the future. Household debt is at it’s highest ever at £1.43 trillion and this will only grow with new buyers taking on new debt.