BoE to turn off Funding for Lending tap for mortgages

The Funding for Lending Scheme was launched in the July 2012 in an attempt to drive down bank funding costs and increase mortgage and business lending. But with the mortgage market now improving the Bank of England and Treasury have agreed to refocus the scheme solely toward business lending from 2014. "Since its launch the FLS has contributed to a substantial fall in bank funding costs," Bank governor Mark Carney said. "This has fed through to significant improvements in household credit conditions. Credit conditions for smaller businesses have also improved, but to a lesser exten...