MSE News: Bank funding scheme unveiled to aid household lending

Former_MSE_Guy

"Bank of England governor Sir Mervyn King and the Chancellor are working together on a 'funding for lending' project ..."

Read the full story:
Bank funding scheme unveiled to aid household lending

PaulChelt

Just give £1,230 to every man, woman and child. That would be better received.

Jonee

We don`t want or need to borrow anymore money...we need more money in our pay packets....simple....

lradders

Does this apply to a loan I'm needing for household improvements....not going to start a business or anything?

Thanks for any advice.

brit1234

More stupid stimulus prolonging the problem putting tax payers at more risk. Please stop this I don't want to keep seeing the smug Ed Balls on my tele any more

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jobdone1

this is a smoke and mirriors approach ask me this ybs has raised exsiting customers mortgages twice in the last six months for remortgage deals other banks have been raising o/d rates and so on, their is no way the banks are going to help the stalled economy well ok the in reverse economy all they are going to do is store more of this q/e and have more lavish bonuses and garden party's I CAN'T WAIT UNTIL THIS COALITION GET KICKED INTO THE LONG GRASS

luckyc_2

This may sound like a silly question, but Ive often wondered what would happen if the government suddenly announced that everybodys credit card, overdraft and loan was wiped clean with nothing else to pay except your mortgage instead of them giving the money to bail out the banks.
Im certainly not saying that would ever happen but i get these odd thoughts rattling around once in a while. Lol

rogerblack

A tiny fraction of 80 billion would build enough houses to eliminate the housing shortage, making houses lots more affordable directly.

bigadaj

luckyc wrote: »

This may sound like a silly question, but Ive often wondered what would happen if the government suddenly announced that everybodys credit card, overdraft and loan was wiped clean with nothing else to pay except your mortgage instead of them giving the money to bail out the banks.
Im certainly not saying that would ever happen but i get these odd thoughts rattling around once in a while. Lol

Moral hazard.

bigadaj

rogerblack wrote: »

A tiny fraction of 80 billion would build enough houses to eliminate the housing shortage, making houses lots more affordable directly.

Possibly but would this automatically reduce house prices, which is the main problem ie affordability.

Rule of thumb for new houses has always been a third is land costs, a third is build costs and the final third is financing and profit, if the land costs were reduced radically, by making this a condition of the planning permission then this may help.

Butterfly_Brain

So the government want to lend tax payers money to the banks at low interest rates, so that the banks can lend it back to taxpayers i.e small businesses and home buyers at a higher interest rate, therefore increasing debt, isn't that what got us into this mess in the first place along with greedy unscrupulous banksters.
What is more likely is that the banks will do exactly what they did the last time and stop lending - they will just use it to buffer the losses that they will incur as each Euro bailout defaults and of course still award themselves huge bonuses.