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Firms participating in FLS more than double in one month
The Bank of England (BoE) has confirmed that 30 financial institutions have signed up to its Funding for Lending Scheme, up 17 from September.
New particpants to the Scheme include The Co-operative Bank, Coventry Building Society, Tesco Bank and Newbury building society. [Full list can be seen below].
Seventeen of the 30 participants are building societies.
FLS Group | Certified lending to UK households and PNFCs (£mn) | Aggregate outstanding FLS drawings (£mn) | ||
Base stock of loans as at 30.06.12 |
Quarterly net lending flow
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Cumulative net lending status since 30.06.12 | ||
TOTAL | 1,325,555 | n/a | n/a | n/a |
Aldermore | 1,567 | n/a | n/a | n/a |
Arbuthnot Latham | 507 | n/a | n/a | n/a |
Barclays | 181,020 | n/a | n/a | n/a |
Cambridge BS | 851 | n/a | n/a | n/a |
Clydesdale | 33,172 | n/a | n/a | n/a |
Co-operative | 31,768 | n/a | n/a | n/a |
Coventry BS | 20,954 | n/a | n/a | n/a |
Cumberland BS | 1,190 | n/a | n/a | n/a |
Hinckley & Rugby BS | 433 | n/a | n/a | n/a |
Ipswich BS | 412 | n/a | n/a | n/a |
Julian Hodge Bank | 374 | n/a | n/a | n/a |
Kleinwort Benson | 11 | n/a | n/a | n/a |
Leeds BS | 7,569 | n/a | n/a | n/a |
Lloyds Banking Group | 443,255 | n/a | n/a | n/a |
Manchester BS | 569 | n/a | n/a | n/a |
Mansfield BS | 213 | n/a | n/a | n/a |
Market Harborough BS | 322 | n/a | n/a | n/a |
Metro Bank | 78 | n/a | n/a | n/a |
Monmouthshire BS | 629 | n/a | n/a | n/a |
Nationwide BS | 152,155 | n/a | n/a | n/a |
Newbury BS | 554 | n/a | n/a | n/a |
Newcastle BS | 2,705 | n/a | n/a | n/a |
Nottingham BS | 2,123 | N/A | N/A | N/A |
Principality BS | 5,408 | n/a | n/a | n/a |
RBS Group | 214,816 | n/a | n/a | n/a |
Santander | 189,339 | n/a | n/a | n/a |
Skipton BS | 9,494 | n/a | n/a | n/a |
Tesco Bank | 4,826 | n/a | n/a | n/a |
Virgin Money | 15,093 | n/a | n/a | n/a |
West Bromwich BS | 4,148 | n/a | n/a | n/a |
Brian Murphy, head of Lending at Mortgage Advice Bureau said: “With 30 lenders now signed up to the Funding for Lending Scheme (FLS) it bodes well lending levels for next year. It’s too early to start talking about the scale of the impact but we have noticed that pricing has been moving downwards recently.”
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Mortgage Advice Bureau added the Bank of England should reconsider its criteria to enable non-banks to join the FLS.
Earlier this month, Precise Mortgages exclusively told Mortgage Solutions its plans to challenge the Bank of England to to convince it to change its criteria for mortgage lenders accessing the Funding for Lending Scheme (FLS), which currently excludes non-banks.
Alan Cleary, managing director of Precise Mortgages said: “Unfortunately non-banks are excluded from the scheme probably as a result of [the government] not thinking it through fully. We have spoken to the Council of Mortgage Lenders and will be speaking to the Bank of England as to why non-banks are excluded.
“The unintended consequence of the FLS is that it puts FSA regulated non-banks at a significant disadvantage to deposit-taking lenders.”