Jump to content
House Price Crash Forum
Sign in to follow this  
rollover

Net Lending Falls By £300M In First Quarter Despite Ffl

Recommended Posts

The Bank of England has reported that net lending has fallen by £300m in the first quarter of 2013, despite the government's Funding for Lending Scheme issuing £2.6bn to banks in the same period. Net lending is an imperfect measure for the effectiveness of the scheme, as reducing lending costs will not necessarily result in an improvement in net lending. Banks can adjust the lending they issue, but have less control over the repayments they receive. While gross lending might be a better metric, net lending is the one that has been chosen, and the scheme is failing by that yardstick. Since the introduction of the scheme £16.45bn has been issued to banks while net lending has dropped by £1.8bn over the same timescale. Link

It is falling whatever it is they call it. People can't afford to borrow, if everything is so expensive now.

Share this post


Link to post
Share on other sites

It is falling whatever it is they call it. People can't afford to borrow, if everything is so expensive now.

I might have got this a bit too simple in my mind.

Mortgage lending at less than half of pre-2007 levels = more repayment than new loans = decrease in net lending.

Demographics point towards a natural decline in lending levels - unless you MEW for a new car/boat/kitchen/holiday/BTL. :D

Share this post


Link to post
Share on other sites

It is falling whatever it is they call it. People can't afford to borrow, if everything is so expensive now.

When incomes are fully accounted for what good is borrowing more money that costs meaning having to stretch incomes even further.....does not make any sense.....less debt = more left to spend = feeling better off.

More debt = more cost = feeling worse off. ;)

Share this post


Link to post
Share on other sites

When incomes are fully accounted for what good is borrowing more money that costs meaning having to stretch incomes even further.....does not make any sense.....less debt = more left to spend = feeling better off.

More debt = more cost = feeling worse off. ;)

Of course the only people/businesses that want to borrow are the ones the banks consider too risky to lend to. The one the banks would lend to don't want to borrow because the banks are to risky to rely on.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 246 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.