Special Liquidity Scheme

[the_duke_of_hazzard]

I'd forgotten that the SLS ended during last month:

http://www.bankofengland.co.uk/publications/news/2008/029.htm

That, combined with NS&I coming back surely means that lending for mortgages must be properly dying now right? If interest rates go up the housing market's going to be proper dying isn't it?

[onesmallstep]

I'd forgotten that the SLS ended during last month:

http://www.bankofengland.co.uk/publications/news/2008/029.htm

That, combined with NS&I coming back surely means that lending for mortgages must be properly dying now right? If interest rates go up the housing market's going to be proper dying isn't it?

printy, printy

[The Masked Tulip]

I'd forgotten that the SLS ended during last month:

http://www.bankofengland.co.uk/publications/news/2008/029.htm

That, combined with NS&I coming back surely means that lending for mortgages must be properly dying now right? If interest rates go up the housing market's going to be proper dying isn't it?

I dont follow your reasoning for either?

[onesmallstep]

actually I think there is a good chance they have twigged that they need to pop the bubble.

[inflating]

actually I think there is a good chance they have twigged that they need to pop the bubble.

and not inflatey inflatey?

[interestrateripoff]

I thought it all came under the Official Secrets Act now?

+1

They don't have to tell the proles feck all now.

Ended

[onesmallstep]

and not inflatey inflatey?

inflatey inflatey does more harm than good,

[okaycuckoo]

I thought it all came under the Official Secrets Act now?

You being sarcastic, or did I miss something?

[exiges]

IIRC, the facility has ended but doesn't need to be repaid until January 2012

SLS information : http://uk.reuters.com/article/2011/01/10/britain-boe-liquidity-idUKLDE70919N20110110

Edited May 15, 2011 by exiges

[NEO72]

I dont follow your reasoning for either?

End of smi = less money to lend via mortgages.

Repayment of smi = less money still.

Ns&i = more interest paid, less to lend (perhaps)

N.b. ns&i index linkers may have the additional effect of diverting investment money from housing.

[the_duke_of_hazzard]

N.b. ns&i index linkers may have the additional effect of diverting investment money from housing.

That's what I was thinking - hence the banks' squealing.

[the_duke_of_hazzard]

IIRC, the facility has ended but doesn't need to be repaid until January 2012

SLS information : http://uk.reuters.com/article/2011/01/10/britain-boe-liquidity-idUKLDE70919N20110110

Thanks for that - so the artificial circumstances that allowed lending to continue (albeit without the walls of cash sloshing through the lending market in the early part of the century) will go by the end of the year, leaving the market to pop and (presumably) repossessions to rise.

The next year will be interesting.