Comments on Effects of Funding for Lending Scheme

London, United Kingdom (15 August, 2012) –, an independent estate agent review and rating website, comment on how the new Funding for Lending Scheme (FLS) will impact mortgage lending.

The government’s Funding for Lending mortgage scheme has made £80bn available to banks and building societies to borrow on the condition that they increase the number of loans granted to individuals and businesses.

The scheme is designed to “encourage banks to make loans to families and businesses both cheaper and more easily available” by incentivising lenders, as the more they lend, the cheaper the credit scheme will be.

In theory, FLS should increase the number of property transactions, giving a much needed boost to the housing market as more people are able to access finance.

However, there is no small print to stipulate who the banks must lend to, and early data suggests that lenders are only passing rate cuts on to mortgage customers with low loan-to-value ratios rather than first-time buyers with smaller deposits.

There isn’t a finance shortage for those with low LTVs, so in order for overall lending to increase and for the FLS to be successful, the banks therefore need to increase lending to first-time buyers with lower deposits.

A spokesperson for commented: “Nationally, the property market has increasingly become two-tiered; house price growth in London and the south-east has been outstripping the rest of the country. Negative house price growth in much of the UK means that sellers and local estate agents outside London in particular will welcome the scheme as, if effective, it will enable house prices outside of the capital to recover by increasing buyer demand.”

For more information on and their estate agency services, visit their website at

About is a London-based company specialising in independent estate agent reviews and ratings to help homeowners find the best estate agents for property sales or lettings.’s website is simple and easy to use; a user simply types in their area or postcode and then can read independent, objective reviews and ratings from previous clients who have used estate agents in their area.

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