ABOUT BLOOMING TIME!

ABOUT BLOOMING TIME!

Today it has been confirmed that money will be lent to households and small businesses in the UK, at reasonable rates; something that Landlord Referencing Services has been campaigning for over the past two years.

Under the scheme, British banks are being offered funding at low interest rates over a four-year period. It will be directly linked to bank lending performance, to encourage lenders to increase loan availability and reduce rates.

Governor of the Bank of England and Chairman of the Monetary Policy Committee, Sir Mervyn King, has said the £80billion scheme will create ‘strong incentives’ for banks to increase lending.

For every £1 of additional lending made by a bank, it will be able to access an extra £1 of cheap funding from the scheme and those that reduce lending will have to pay higher fees to use the scheme.

He added: ‘The more banks expand lending, the more they can use the scheme. That will encourage banks to make loans to families and businesses both cheaper and more easily available.’

Banks will be able to access finance at rates from around 0.75% including fees – far cheaper than the equivalent 1.25% to 2.5% rate in finance markets. They will be able to borrow up to 5% of their existing lending stock, which will be increased if they expand net lending over the next 18 months.

The Bank will publish a bank-by-bank breakdown of lending each quarter, which will lay bare the success of the scheme.

Chancellor of the Exchequer, George Osbourne, said the scheme showed Britain was ‘not powerless to act’ in the face of the eurozone crisis.

This is definitely a significant step in the right direction for first-time buyers and small businesses who will benefit the most, after being starved of affordable credit for years.

Since the day Landlord Referencing started (2 years ago) we have been pleading with the government not to allow banks and institutions to simply borrow money at a gifted base rate and then dribble it back to business as a token gesture; at huge interest margins. But instead, start the National UK Bank & give money out to those industrialists & entrepreneurs who can build our economy by keeping restrictions on borrowing & spending, but keep interest rates low for those who want to work hard.

Therefore we are extremely pleased that they have sat up and taken notice of this.

If a garden is out of control we all understand that it needs to be cut back, in order for it to be able to flourish again – NOT to stop watering it entirely; as it will inevitably stop growing and die...

Hopefully they won’t just keep cutting back the bush now and actually start watering it again; meaning that we can watch our economy blossom once more.

Previous blogs on this subject:

From Paul aged 7 to Mr Cameron

Start the National UK Bank & give money out to those industrialists & entrepreneurs.

Ner ner Ne ner ner – told you so!!

IMF warn UK Coalition to get their act together.

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Author: Media Team

Keeping you up to date with all the most important changes, all the most interesting gossip and all the big news in the Private Rented Sector.

Website: http://www.landlordreferencing.co.uk

3 Comments

  1. Pingback: Data gathering puts government on course for national rent cap.

  2. PLEASE Mr UK Press, focus on the millions of customers that use our banking system successfully services every day and the profit they earn and the taxes they pay to support our economy. Focus on the Government and it’s investment of £80 billion into our economy which, in turn, means the banks could feel safer and double that amount which will help our economy.

    Focus on the great achievements of the project managers at the Olympics who built everything on time rather than a problem with security which will keep people away. I am all for freedom of speech but that freedom needs to have a balance. At the moment all I see and hear is the press showing us the grim reaper on everything they report and that in turn cannot help to find the spirit of Dunkirk which is so desperately needed in order to lift this country out of recession and get outside investors to trust us again.

    There is £85 billion pounds sitting in the Bank accounts of private companies earning ZERO interest and which is not being invested because companies are too scared at losing it if they invest into our economy. They would prefer not to earn anything, rather than lose any and that alone tells you about the lack of confidence that that the press are instilling into this Country with their constant negative reporting day in and day out..

  3. Great news if it happens and years more s##t if it does not. When I heard about this the first time around I approached my bank manager to see if I was eligible and they told me that it was only for new business and not roll-over business.

    So if you want a new loan OK! but according to my Bank all of us that got caught up in the wake of their bad lending are all stuffed!!. However just heard on the news that it is to maintain existing customers loans as long as they stay at the same level or are increased.