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Government plans to increase secured loans

Government plans to increase secured loans

Category: Loans

Updated: 04/04/2011
First Published: 19/01/2009

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 government has announced new support for financial institutions, designed to get them to increase lending.

Secured and unsecured loans could become more widely available as a result of the measures, which include providing banks with protection against potential losses.

The Treasury hopes that offering protection will increase confidence, as it targets assets "most affected" by the global economic downturn.

It stated that the credit guarantee scheme would also be extended, with the aim of a rise of lending to boost the UK economy as a whole.

Council of Mortgage Lenders welcomed the announcement, suggesting that they represent a more effective means to support an increase in secured loans than previous steps.

"At long last, the government has announced a comprehensive and co-ordinated package of measures sufficiently large in scale to have an impact on improving the flow of new lending," said director general of the body Michael Coogan.

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