Plans for a mortgage lending boost are unveiled by Osborne.
The Chancellor George Osborne has unveiled plans to boost mortgage lending.
He said that the Government aims to defend the UK economy from crisis at home, by unveiling a financial aid package worth over £100 billion to support banks to increase lending levels for both small businesses and mortgages.
Osborne said the scheme will increase mortgage lending to families who aspire to own property. He added that as current financial storm clouds gather, the Government together with the BoE will so everything possible to protect British families and businesses.
The newly announced scheme aims to provide 6 month liquidity in £5 billion tranches to UK banks.
The Government's fund for lending scheme will offer banks funding for extended periods over several years.
The rates offered are to be priced below present market rates and will be linked to performance in expanding or sustaining their lending.
BoE governor Mervyn King commented saying that the amount of funding on offer could only be made available long term at low pricing levels with Government's approval, which was granted by the Chancellor Gorge Osborne. He went on to add that the new scheme is a joint effort between the Bank and the Treasury.
It was suggested that the new lending scheme could be up and running in just a few short weeks. For those looking to buy a house or remortgage this summer, the news is very positive as an increase in mortgage lending levels should mean easier access to loans.
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