"Funding for Lending" Scheme...

Flatliner27

My first post here but been a regular lurker for years!
Hi everyone, read about this 'Funding for Lending' scheme by the Bank of England and the Treaury which is due to launch in August 2012 ...

[EDIT] Not allowed to post links due to being a newcomer. Search 'BBC Funding for Lending' in Google

... thought I'd post it here since I haven't already seen it. Just wondering what your views are on this as my partner and I are on the verge of choosing a mortgage after several consultations but now not sure whether to hold out and hopefully benefit from the resulting lower interest rates.

Will the banks take on this incentive or just widen their margins (as mentioned in the article)?


Looking to borrow about £120k (inc. deposit) and been offered rates in the region of 4.7%-5% fixed for 2-4 years.

Looking for any opinions on whether or not we would be better off waiting for this scheme.

Cheers, Adam (and Hannah)

Thrugelmir

Don't expect cheap mortgages to appear.

This move is to pre empt the envitable rise in the cost of funding that lenders are going to face (are already facing).

Also much to do with keeping sufficient funding available to stop the property market grinding to a halt.