Monday, Feb 09, 2015

Business Lending Baloney

Notayesmanseconomics's Blog: The rise of the disappearing UK mortgage rate

A discussion of mortgage rates and the Funding for Lending scheme. Richards is clearly of the opinion that FLS was nothing but a ruse to justify boosting the property market: "If we switch to the Bank of England data then we see that its two-year 75% loan to value index peaked at 6.6% in June 2008. This then fell in response to monetary policy easing to 2.92% in September 2011 but then rose to 3.74% in June 2012. We do not have to estimate the panic that this caused in the UK establishment as it only took to the 13 th of July 2012 for the Funding for (Mortgage) Lending Scheme to begin. Of course that had to be hidden by the smokescreen of a claimed boost to business lending. Am I the only person bothered by the fact that this has not only not turned up but things have got worse?"

Posted by quiet guy @ 05:20 PM (4829 views)
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2 Comments

1. hpwatcher said...

42 billions of FLS was the killer; UK government completely gave up on business providing the GDP boost that was needed......so they just pumped it into UK mortgages instead.

It's a staggering vote of 'No confidence', by UK Government in UK businesses.

Tuesday, February 10, 2015 06:50AM Report Comment
 

2. libertas said...

"This (mortgage rates) then fell in response to monetary policy easing to 2.92% in September 2011"

WRONG. Monetary easing was a RESPONSE to economic weakness. Central Banks respond and do not control markets.

Wednesday, February 11, 2015 11:43PM Report Comment
 

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