UK turns off FLS for mortgage lending
The Bank of England and the UK Treasury have changed the terms of the Funding for Lending Scheme (FLS) for next year to refocus the incentives towards business lending, as concerns grow over a potential housing bubble in the UK.
Banks will be able to draw £5 from the scheme at 25bp for every £1 of net lending to SMEs in 2014, but household lending next year will no longer generate any additional borrowing allowances.
Average UK house prices rose by 6.8% in the 12 months to October,
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