The Bank of England’s Funding for Lending scheme is finally breathing life into a largely moribund mortgage market after a 14% jump in home loans in October, the Council of Mortgage Lenders said today.
Lenders advanced £12.9 billion in house purchase and remortgage loans over the month, well ahead of September’s £11.4 billion and the highest amount since last November, its figures showed. Lending was also 4% ahead of the same month last year.
CML chief economist Bob Pannell said: “The FLS is likely to have made an early positive impact, helping to counter some of the negative pressures associated with a protracted and weak economic recovery.”
The scheme allows lenders to tap cheap funds in return for increasing their lending. A total of 30 lenders accounting for £1.3 trillion in net lending have so far signed up.
