London, United Kingdom (03 July, 2012) – MeetMyAgent.co.uk, an independent estate agent review and rating website, comments on the new lending scheme which will boost mortgage lending.
George Osbourne, the Chancellor of the Exchequer, and Sir Mervyn King, the Bank of England Governor, have revealed a new lending scheme to boost mortgage and business lending. The new plan will provide funding to lenders at a lower market rate with conditions attached, and this will ultimately force lenders to loan money to homebuyers and businesses.
Loans from the Bank of England will also come with some conditions, as banks will be required to pass on cheap loans for lower mortgage rates. However, the consumer rights company Which? are asking for assurances that cheap loans will be passed to potential buyers with lower interest rates.
The Eurozone crisis has ultimately forced average mortgage rates to shoot up by about 0.5% in the past six months, and bank shares at Lloyds Banking Group, Royal Bank of Scotland and Barclays have all risen due to the proposed lending scheme. The scheme has been welcomed by the Council of Mortgage Lenders but they believe its impact is very unclear. Other industry experts have also questioned the scale of lending and how many loans will be dedicated to small business lending.
The scheme could make a significant difference to gross lending this year and will provide loans which would have been previously unavailable. It was expected that gross lending would be lower than last year but it appears it may be very similar. The scheme is expected to be launched within the next few weeks and should make an impact in September or October.
A spokesperson for MeetMyAgent.co.uk commented: “It’s clear for all to see that the housing market needs a boost and some fresh impetus. There’s little doubt that there’s demand to buy and a healthy aspiration amongst many to be homeowners. The post credit-crunch tightening of lending criteria has conspired to prevent would-be buyers from taking that desired step onto the housing ladder. Any scheme that helps to increase the availability of lending will be welcomed; the question remains whether the intention of the scheme will translate into its desired outcome.”
For more information on MeetMyAgent.co.uk and their local estate agents, visit their website at http://www.meetmyagent.co.uk.
MeetMyAgent.co.uk 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. MeetMyAgent.co.uk’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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