The government launched the Funding for Lending scheme in August last
\nyear. It was designed to encourage banks to offer cheaper loans to
\nsmall and medium sized businesses. As a reward for offering cheaper
\ncredit to businesses, the banks would then be able to take advantage
\nof cheap loans from the Bank of England.<\/p>\n
Funding for Lending scheme extended<\/strong><\/p>\n The Bank of England scheme has now been extended to accommodate \u201cIt could be a no-brainer,\u201d commented Rob Wood, chief UK economist at Landlords can widen their investment portfolios<\/strong><\/p>\n Expansion of the Funding for Lending scheme is a great opportunity Criticism of the scheme<\/strong><\/p>\n There has been criticism of the FLS, however, and some experts feel The government launched the Funding for Lending scheme in August last year. It was designed to encourage banks to offer cheaper loans to small and medium sized businesses. As a reward for offering cheaper credit to businesses, the banks would … Continue reading
\nproperty investors. This means that any business with an annual
\nturnover of less than \u00a325 million can lend money to landlords and
\nother property investors.<\/p>\n
\nBerenberg Bank. \u201cLend to a landlord<\/a> \u2013 collateral easy to price \u2013 and
\nget 10 times that lending back as essentially free funding, then
\nrecycle some of that back out again on mortgages or BTL.\u201d<\/p>\n
\nfor landlords to access cheaper debt and expand their investment
\nportfolios. Landlords have already been able to take advantage of
\ncheaper buy to let lending thanks to the Funding for Lending scheme.
\nSince last August when the FLS launched, the average rate on offer
\nfor a buy to let mortgage has fallen from 5.09% to 4.28%. As a
\nresult, buy to let lending has increased by 19% in the same period.<\/p>\n
\nthat the government should be channelling more money into helping
\nfirst time buyers get a foothold on the property<\/a> ladder instead.<\/p>\n","protected":false},"excerpt":{"rendered":"