Wednesday, Apr 24, 2013


Channel 4 News Faisal Islam blog: Is souped-up scheme a shot in the arm for lending?

“On steroids” was the description applied by Deputy Prime Minister Nick Clegg to the new souped-up “supercharged” Bank of England Funding for Lending Scheme (FLS) ... Even more intriguing is something I discovered and confirmed with the Bank of England. One of the extensions announced today will be the incorporation into the scheme of previously barred “specialist lenders” in the mortgage market. This is a euphemism for specialist buy-to-let (BTL) and high loan-to-value lending units of banks, but also stand-alone companies. I presume this means that companies such as Paragon and Precise will now be in receipt of central bank subsidised funding to lend to landlords. H/T to oldsport.

Posted by quiet guy @ 10:56 PM (2757 views)
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1. hpwatcher said...

Desperate bunch of fools.

Thursday, April 25, 2013 08:40AM Report Comment

2. alan said...

A good article.

Faisal says "I do detect something interesting from the Treasury approach to this. The Treasury sees this scheme as a stimulus. It knows there is a need to be seen to stimulate the economy. A cynic might question the timing, the day before we expect another round of disappointing GDP figures. The Treasury will argue that this is entirely in keeping with its Plan A strategy of fiscal conservatism and monetary activism".

Faisal concludes:

"The economic opiate of a house price stimulus for a chancellor near an election seems to remain as strong as ever in a coalition committed to rebalancing. In which case this is not economic policy on steroids. It is economic policy on smack".

Thursday, April 25, 2013 08:42AM Report Comment

3. hpwatcher said...

Question is how much government money will go into it - when some parts of the economy are being cut back quite severely.

Thursday, April 25, 2013 09:29AM Report Comment

4. khards said...

Does this mean that private money has stopped flowing into BTL and people are realizing that it is not easy money?

On a side note one of my relatives (ex pat boomer) owns several properties in NZ and have recently been complained that it is not worth the effort.Perhaps people are waking up?

Looks like the game has changed to me.

Thursday, April 25, 2013 09:51AM Report Comment

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