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  • FIRST POST
    • MSE Guy
    • By MSE Guy 15th Jun 12, 8:41 AM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Bank funding scheme unveiled to aid household lending
    • #1
    • 15th Jun 12, 8:41 AM
    MSE News: Bank funding scheme unveiled to aid household lending 15th Jun 12 at 8:41 AM
    "Bank of England governor Sir Mervyn King and the Chancellor are working together on a 'funding for lending' project ..."

Page 1
    • PaulChelt
    • By PaulChelt 15th Jun 12, 10:50 AM
    • 11 Posts
    • 8 Thanks
    PaulChelt
    • #2
    • 15th Jun 12, 10:50 AM
    • #2
    • 15th Jun 12, 10:50 AM
    Just give £1,230 to every man, woman and child. That would be better received.
    • Jonee
    • By Jonee 15th Jun 12, 10:59 AM
    • 49 Posts
    • 132 Thanks
    Jonee
    • #3
    • 15th Jun 12, 10:59 AM
    • #3
    • 15th Jun 12, 10:59 AM
    We don`t want or need to borrow anymore money...we need more money in our pay packets....simple....
  • lradders
    • #4
    • 15th Jun 12, 11:34 AM
    • #4
    • 15th Jun 12, 11:34 AM
    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
    • By brit1234 15th Jun 12, 11:47 AM
    • 5,191 Posts
    • 11,968 Thanks
    brit1234
    • #5
    • 15th Jun 12, 11:47 AM
    • #5
    • 15th Jun 12, 11:47 AM
    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

    .
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
    • jobdone1
    • By jobdone1 15th Jun 12, 11:48 AM
    • 719 Posts
    • 540 Thanks
    jobdone1
    • #6
    • 15th Jun 12, 11:48 AM
    • #6
    • 15th Jun 12, 11:48 AM
    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
    • #7
    • 15th Jun 12, 2:36 PM
    • #7
    • 15th Jun 12, 2:36 PM
    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
    • By rogerblack 15th Jun 12, 5:30 PM
    • 9,273 Posts
    • 9,438 Thanks
    rogerblack
    • #8
    • 15th Jun 12, 5:30 PM
    • #8
    • 15th Jun 12, 5:30 PM
    A tiny fraction of 80 billion would build enough houses to eliminate the housing shortage, making houses lots more affordable directly.
    • bigadaj
    • By bigadaj 15th Jun 12, 5:35 PM
    • 10,827 Posts
    • 7,160 Thanks
    bigadaj
    • #9
    • 15th Jun 12, 5:35 PM
    • #9
    • 15th Jun 12, 5:35 PM
    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
    Originally posted by luckyc
    Moral hazard.
    • bigadaj
    • By bigadaj 15th Jun 12, 5:39 PM
    • 10,827 Posts
    • 7,160 Thanks
    bigadaj
    A tiny fraction of 80 billion would build enough houses to eliminate the housing shortage, making houses lots more affordable directly.
    Originally posted by rogerblack
    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
    • By Butterfly Brain 15th Jun 12, 9:53 PM
    • 8,736 Posts
    • 61,001 Thanks
    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.
    Blessed are the cracked for they are the ones that let in the light
    C.R.A.P R.O.L.L.Z. Member #35 Butterfly Brain + OH - Foraging Fixers
    Not Buying it 2015!
    • Thrugelmir
    • By Thrugelmir 15th Jun 12, 9:56 PM
    • 63,196 Posts
    • 56,071 Thanks
    Thrugelmir
    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,
    Originally posted by Butterfly Brain
    Banks need secure lines of finance in order to operate. Without funding, the availability of new mortgage money for mortgages would collapse totally. The situation is potentially very serious.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • HAMISH_MCTAVISH
    • By HAMISH_MCTAVISH 15th Jun 12, 11:24 PM
    • 26,042 Posts
    • 59,359 Thanks
    HAMISH_MCTAVISH
    A tiny fraction of 80 billion would build enough houses to eliminate the housing shortage, making houses lots more affordable directly.
    Originally posted by rogerblack
    The current housing shortage is around a million houses.

    It's expected to grow to 2 million houses by 2020.

    It would cost in the region of 500 billion pounds just to eliminate the current and projected shortfall by 2020. That's in addition to current and projected build rates, and it's assuming the houses could be built on a not for profit basis by the government using economies of scale.

    To put that in perspective, half a trillion pounds is 500% of the current annual deficit, and 50% again of the entire UK national debt.

    It's simply not going to happen....
    • CLAPTON
    • By CLAPTON 16th Jun 12, 8:09 AM
    • 41,650 Posts
    • 30,691 Thanks
    CLAPTON
    The current housing shortage is around a million houses.

    It's expected to grow to 2 million houses by 2020.

    It would cost in the region of 500 billion pounds just to eliminate the current and projected shortfall by 2020. That's in addition to current and projected build rates, and it's assuming the houses could be built on a not for profit basis by the government using economies of scale.

    To put that in perspective, half a trillion pounds is 500% of the current annual deficit, and 50% again of the entire UK national debt.

    It's simply not going to happen....
    Originally posted by HAMISH_MCTAVISH

    of course there are some scary numbers here but assuming a house lasts for 100 years then the 'per year' cost, reduces from 50% of national debt to only 0.5% of national debt so maybe a worthwhile investment

    and of course if it succeeds in stimulating the economy so we start growing again, the tax take will rise and benefits bill will fall


    basically building houses seems a good idea at the moment althouigh of course there are no good ideas the government can't muck up
  • tricklesthegreek
    does this mean we will be able to get 95% mortgages again?
    I blooming hope so. We could afford a property standing on our heads and the mortgage payment. What is ridiculous is us paying rent plus trying to save for this stupid deposit which is going to take us about three years because rents are so high. No logic.
    Bankrupt June 15th 2009. Early discharge granted March 4th 2010. Nose completely clean ever since. Got a barclays and co op basic account with debit card, own mobile contract, own gas and electric, own landline, own vanquis credit card which is paid off in full each month. Credit files cleaned up and all say satisfied.
    • bigadaj
    • By bigadaj 16th Jun 12, 8:27 PM
    • 10,827 Posts
    • 7,160 Thanks
    bigadaj
    I blooming hope so. We could afford a property standing on our heads and the mortgage payment. What is ridiculous is us paying rent plus trying to save for this stupid deposit which is going to take us about three years because rents are so high. No logic.
    Originally posted by tricklesthegreek
    So long as you can with interest rates at fifteen per cent then Fair enough, current rates are so low because of the last !!!! up in lending.

    Credit to you sorting things out from your Tag line, but you are only two years out of bankruptcy, would you lend money to you?
    • Thrugelmir
    • By Thrugelmir 16th Jun 12, 10:55 PM
    • 63,196 Posts
    • 56,071 Thanks
    Thrugelmir
    I blooming hope so. We could afford a property standing on our heads and the mortgage payment. What is ridiculous is us paying rent plus trying to save for this stupid deposit which is going to take us about three years because rents are so high. No logic.
    Originally posted by tricklesthegreek
    That's the price one pays. Saving for a deposit does take time. To a lender it gives reassurance as to financial discipline of the borrower.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • HAMISH_MCTAVISH
    • By HAMISH_MCTAVISH 17th Jun 12, 10:46 AM
    • 26,042 Posts
    • 59,359 Thanks
    HAMISH_MCTAVISH
    Sunday Times......

    ..... is reporting that Merv has told the UK banks to run down their cash reserves in a surprise U turn that will raise the value of last weeks 140bn lending package for the economy to £300bn.

    Analysts estimate the radical shift in cash reserve policy will see an additional £150 released to mortgage and small business lending, in addition to the £140bn announced last week.

    Allowing UK banks to hold less on deposit and carry less in Gilts could lead to a huge move in financial markets, with banks using the cash to buy mortgages and corporate bonds.

    Much of the money created through QE could then move from the banks balance sheets into the real economy, resulting in massive levels of stimulus for the real economy not yet seen throughout the financial crisis to date.

    The BOE has been the most conservative in the West during the crisis, with the amount of cash banks have been ordered to hold on reserve a key bone of contention.

    "I am now holding so much money in cash reserves I could lose every single big commercial deposit and every short term funding line and still have billions and billions and billions left in reserve." said one bank CEO. "That money is just dead. It does not move through the economy."
    • leveller2911
    • By leveller2911 17th Jun 12, 12:05 PM
    • 7,539 Posts
    • 13,947 Thanks
    leveller2911
    About time house prices went up too. I think its time to stock pile FTB properties if you are looking to sell them for an instant gain.

    British economy has suffered quite a bit in the last year so I think we are going to see a temporary boost.

    Just my opinion , House prices will fall is out of the question now, we need to monitor how the market reacts to the news and how it reacts to the lending.

    "Prices are going one way, you need to see a lawyer."
    Originally posted by business_man


    Just corrected that for ya fella.........

    Are you Fungus Wilson trying to off load your property empire.



    Last edited by leveller2911; 17-06-2012 at 12:10 PM.
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