Bank of England Funding for Lending - IMLA renews call for expansion of the scheme

08 March 2013

Peter Williams, Executive Director of IMLA, responds to the Bank of England’s decision to maintain its existing quantitative easing programme

“Given the Bank’s decision to hold back on further quantitative easing, there is an even stronger argument for building on the early momentum of the Funding for Lending Scheme (FLS) by expanding it to include the non-banking sector.

“Acting on this would be a significant step in the right direction to improve the flow of funding into the mortgage market, through specialist lenders as well as mainstream banks and building societies. Their exclusion has almost certainly limited the impact of what FLS has been able to achieve so far.

“There is a real appetite among lenders to increase their volumes this year, and widening the FLS to make it more inclusive would fuel competition and help to drive the sustained growth that is so keenly sought. With the Budget less than a fortnight away, we urge the Government to seize this opportunity.”

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