£140Bn fund for small business and mortgage lending

ILW

Thrugelmir wrote: »

Without this funding. Your lender may have to call in your mortgage. how would that make you feel?

Remember NRAM still holds £85 billion of mortgage debt. So I'm sure the Treasury would like to see this remortgaged elsewhere. Thereby reducing the exposure to taxpayers.

I do not believe that mortgages can be "called in" under UK contract law, unless the borrower has defaulted.

Thrugelmir

ILW wrote: »

I do not believe that mortgages can be "called in" under UK contract law, unless the borrower has defaulted.

There's the good old exceptional circumstances clause. A get out of jail for the lender.

PS. I was only making a point not suggesting that it would happen.

tomterm8

I thought the labour government introduced a special resolution regime in 2009 which gives the government the power, during a banking crises, to rewrite any contract as they see fit.

Where banking crises is pretty much defined as an insolvent clearing bank.

Thrugelmir

Graham_Devon wrote: »

Instead, those with the least are going to suffer more than those with the most. Investors will love it. Indeed, a share board I frequent is in overdrive with the celebrations and hope for resource prices to rise.

Global growth is slowing. As the Western $, £'s and Euro's have dried up. Prices may well fall as demand reduces.

The upside is that inflation may not be bad as we fear, Making the adjustment easier.

Joe_Bloggs

Is this not a UK bank bail out in disguise ? I suspect that the banks will sit on this money and ration it in an ultra prudent fashion.
J_B.

Thrugelmir

Joe_Bloggs wrote: »

I suspect that the banks will sit on this money and ration it in an ultra prudent fashion.

So what if they do? There's only limited funds.

Joe_Bloggs

And only limited imagination.
J_B.

Graham_Devon

Why now?

Why tonight?

What do they know?

pqrdef

Apparently this money is going to fall outside the regulatory requirements on capital ratios. Well there wouldn't be much point otherwise.

Does this mean that the BoE will somehow wangle itself into a lower priority than other creditors? Otherwise, it will only do a Spanish job - put other creditors at greater risk and notch down credit ratings.

movilogo

So instead of pulling down house price to a sensible level, they are trying to blow the bubble even bigger!

To kick start economy, they should lower taxes, reduce fuel duty, fund start ups, nationalize banks and public transport etc - so that people can have enough money to spend again.

I can't believe that they don't understand it. Then question is why they don't they do it? The likely answer is ministers are puppets of big businesses.