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."
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