30 lenders now participating in FLS

[Martin@AS Financial]

If the banks start using this money to lend to first time buyers who have limited deposits, this will be great news as it will help get the housing market moving.

(taken from Mortgage Strategy)

A further 17 lenders have signed up to the Government’s Funding for Lending Scheme in the past month, taking the total number of participants to 30.

At the end of September there were 13 lenders participating in the scheme. They were Aldemore, Barclays, Hinckley & Rugby BS, Ipswich BS, Kleinwort Benson, Leeds BS, Lloyds Banking Group, Monmouthshire BS, Nationwide BS, Principality BS, RBS Group, Santander and Virgin Money.

In the past month a further 17 lenders have joined the scheme, including Tesco Bank and Metro Bank.

The 17 new lenders to have signed up to the FLS are: Arbuthnot Latham, Cambridge Building Society, Clydesdale, Co-operative, Coventry Building Society, Cumberland Building Society, Julian Hodge Bank, Manchester Building Society, Mansfield Building Society, Market Harborough Building Society, Metro Bank, Newbury Building Society, Newcastle Building Society, Nottingham Building Society, Skipton Building Society, Tesco Bank and West Bromwich Building Society.

Under the scheme, the Bank of England will lend UK Treasury bills to lenders for up to four years for a 0.25 per cent fee per year, increasing by 0.25 per cent for each 1 per cent fall in net lending to a maximum of 1.5 per cent.

Lenders deposit collateral with the BoE as a security and, according to the Bank, can then use the Treasury bills to access money at “rates close to Bank rate”. Each lender can access up to 5 per cent of its existing stock of loans to SMEs and households and are incentivised to boost lending because every pound of additional lending would be eligible for the scheme.

[escapeUK]

If the banks start using this money to lend to first time buyers who have limited deposits, this will be great news as it will help get the housing market moving.

Why do banks want big deposits? Because they know that houses are overpriced and will ultimately correct downwards, the deposit protects them in this circumstance from losing money in the case of default.

Why do first time buyers not want to buy? Because they know that houses are overpriced and if they wait they will save money.

So why should the government be giving tax payers money away to keep an over inflated asset over inflated and saddling people with years of massive debt?

[Martin@AS Financial]

Why do banks want big deposits? Because they know that houses are overpriced and will ultimately correct downwards, the deposit protects them in this circumstance from losing money in the case of default.

Why do first time buyers not want to buy? Because they know that houses are overpriced and if they wait they will save money.

So why should the government be giving tax payers money away to keep an over inflated asset over inflated and saddling people with years of massive debt?

This is a really good point EscapeUK. Realistically, young people do want to buy and own their own home but have been essentially locked out of the housing market because finance has not been available. With the avergae property in London being around £300,000, you need a minimum of £30,000 just for your deposit. I personally believe that there should be more higher loan to value products and the banks can protect themselves by offering cheap long term fixed rates. This then protects the bank against a correction and the client against rising interest rates.

[escapeUK]

This is a really good point EscapeUK. Realistically, young people do want to buy and own their own home but have been essentially locked out of the housing market because finance has not been available. With the avergae property in London being around £300,000, you need a minimum of £30,000 just for your deposit. I personally believe that there should be more higher loan to value products and the banks can protect themselves by offering cheap long term fixed rates. This then protects the bank against a correction and the client against rising interest rates.

I take the view that if the banks had kept to a sensible 3 - 4 x salary then house prices in London would still be affordable and we wouldnt have had the credit crunch, global recession etc.

[AtW]

"The 17 new lenders to have signed up to the FLS are: Arbuthnot Latham, Cambridge Building Society, Clydesdale, Co-operative, Coventry Building Society, Cumberland Building Society, Julian Hodge Bank, Manchester Building Society, Mansfield Building Society, Market Harborough Building Society, Metro Bank, Newbury Building Society, Newcastle Building Society, Nottingham Building Society, Skipton Building Society, Tesco Bank and West Bromwich Building Society."



This reminds me Coalition of the Willing -

Full list of coalition countries:

"Afghanistan, Albania, Angola, Australia, Azerbaijan, Bulgaria, Colombia, Costa Rica, Czech Republic, Denmark, Dominican Republic, El Salvador, Eritrea, Estonia, Ethiopia, Georgia, Honduras, Hungary, Iceland, Italy, Japan, Kuwait, Latvia, Lithuania, Macedonia, Marshall Islands, Micronesia, Mongolia, Netherlands, Nicaragua, Palau, Panama, Philippines, Poland, Portugal, Romania, Rwanda, Singapore, Slovakia, Solomon Islands, South Korea, Spain, Turkey, Uganda, Ukraine, United Kingdom, United States, Uzbekistan"

http://www.david-morrison.org.uk/ira...of-willing.htm

Now that Arbuthnot Latham is on board everything will be well

[minestrone]

I take the view that if the banks had kept to a sensible 3 - 4 x salary then house prices in London would still be affordable and we wouldnt have had the credit crunch, global recession etc.

The government should have enforced this but we all know that they were crack whores for the rises in house prices.

[Robinho]

If the banks start using this money to lend to first time buyers who have limited deposits, this will be great news as it will help get the housing market moving.

No it will be ******* disastrous news. We got into this mess because of loose money policies from governments and central banks. The solution to the problem is not more loose money policies from the government.

There is no magical way to get everyone into a position where they can own houses, nor should we be aiming for this. You can't get something for nothing and no silly government initiative is gong to change that.

[darmstadt]

Isn't one of the reasons why the banks are all ****ed up is due to loaning money to people to buy property who one day man not be able to pay it back? Bit like a dog chasing it's tail

[minestrone]

Let's face it, if you have bought you are never going to promote a policy that will reduce your house price.

If a house owner has to pay a little bit into tsxation to get people buying again so we don't all lose 10% on our house prices then I am game.

It is fecked up and not one that I really agree with but I have a big expensive house and I will try to keep that valuation even if I do agree that moving back to 3 times will be correct.

We are in a drug reduction moment, cold turkey would bad for me.

[Robinho]

Let's face it, if you have bought you are never going to promote a policy that will reduce your house price.

If a house owner has to pay a little bit into taxation to get people buying again so we don't all lose 10% on our house prices then I am game.

It is fecked up and not one that I really agree with but I have a big expensive house and I will try to keep that valuation even if I do agree that moving back to 3 times will be correct.

We are in a drug reduction moment, cold turkey would bad for me.

I wouldn't worry about house prices. Print print print will be the bank of England's policy for the next decade. People who have bought a house will be fine, it is people who have savings that will be shafted.

Of course it will only prolong the agony.