15
Jun
Osborne reveals funding for lending
The chancellor has revealed a new scheme which he has said the
government hopes will help to boost lending from the high streets,
meaning that people may face better mortgage conditions in the
future.
George Osborne pledged £140 billion under the funding for
lending scheme which will see lenders given money to offer more
credit to those who need it.
Mr Osborne said: "A lack of credit is damaging businesses and
costing jobs, the government and the Bank of England have been
working closely together to develop the right response."
Consumer watchdog Which? said that it was welcoming the new moves
"cautiously" and not praising it without first seeing how effective
the scheme would be.
In recent years, homebuyers have faced tough lending conditions,
with many struggling to raising a deposit of 20 or 25 per cent to
the table to secure a mortgage for buying a house and leaving them
needing to rent.