Funding for Lending participants revealed - Loans - News - Moneyfacts


Funding for Lending participants revealed

Funding for Lending participants revealed

Category: Loans

Updated: 25/09/2012
First Published: 25/09/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Bank of England has released details of the thirteen financial institutions that will take part in the Government's Funding for Lending Scheme (FLS).

The companies, accounting for 73% of lending within the UK , have all confirmed that they will lend money under the billion pound initiative, intended to encourage lending to individuals and small non-financial businesses and boost the UK 's floundering economy.

Monetary Policy Committee member, Paul Fisher, announced that Aldermore, Barclays, Hinckley & Rugby Building Society, Ipswich Building Society,
Kleinwort Benson, Leeds Building Society , Lloyds Banking Group, Monmouthshire Building Society, Nationwide Building Society, Principality Building Society , RBS Group, Santander and Virgin Money will all be participating in the programme.

The scheme, officially launched last month, will allow the Government to offer low cost funds to banks and building societies at a rate of 0.75% above base rate, under the condition that the funding will be used to create affordable loan products and mortgage products.

If the institutions are believed to have increased lending as a result, they will be allowed further funding at a higher rate.

Mr Fisher said: " The Bank cannot give details of an individual firm's previous or new lending plans. It is for each of them to explain how the FLS enables them to support the economy.

"Most have already announced reductions in some interest rates or a loosening of other terms and conditions. Some will respond by lending to firms that they would previously not, because they can now earn a return that compensates for the extra risk. All these approaches will help."

What Next?

Find the best loan for you - Loans Calculator

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…