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You can find the current article at its original source at http://www.guardian.co.uk/money/2012/oct/01/funding-for-lending-fails-ignite-mortgage-borrowing
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| Version 4 | Version 5 |
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| Funding for Lending fails to ignite mortgage borrowing | Funding for Lending fails to ignite mortgage borrowing |
| (25 days later) | |
| The number of homebuyer mortgages approved in August remained unchanged, despite the launch of a Funding for Lending scheme designed to encourage banks and building societies to offer more loans. | The number of homebuyer mortgages approved in August remained unchanged, despite the launch of a Funding for Lending scheme designed to encourage banks and building societies to offer more loans. |
| A total of 47,665 mortgages were approved for house purchase in the month, just 109 more than in July and lower than the previous six-month average of 49,013, figures from the Bank of England show. | A total of 47,665 mortgages were approved for house purchase in the month, just 109 more than in July and lower than the previous six-month average of 49,013, figures from the Bank of England show. |
| The number of remortgages approved showed a bigger increase, rising from 25,329 in July to 26,139, but again was below the six-month average of 27,686. | The number of remortgages approved showed a bigger increase, rising from 25,329 in July to 26,139, but again was below the six-month average of 27,686. |
| The value of lending secured on homes dropped by £276m as borrowers repaid more debts than they took on. This was the second net repayment in mortgage lending in the past three months and the steepest since December 2010. | The value of lending secured on homes dropped by £276m as borrowers repaid more debts than they took on. This was the second net repayment in mortgage lending in the past three months and the steepest since December 2010. |
| The sluggish activity in the housing market is not unusual for August, as the property market tends to slow as people go on holiday. However, the start of the month saw the introduction of the Funding for Lending scheme by the government and the Bank of England, which was designed to make more mortgages available and help revive the housing market by offering cheap loans to lenders. | The sluggish activity in the housing market is not unusual for August, as the property market tends to slow as people go on holiday. However, the start of the month saw the introduction of the Funding for Lending scheme by the government and the Bank of England, which was designed to make more mortgages available and help revive the housing market by offering cheap loans to lenders. |
| The pick-up in remortgaging activity may be a result of the scheme, with many lenders launching low-price deals for borrowers with at least 40% to put down, but the continued quiet in the homebuying market suggests it is yet to have an impact there. | The pick-up in remortgaging activity may be a result of the scheme, with many lenders launching low-price deals for borrowers with at least 40% to put down, but the continued quiet in the homebuying market suggests it is yet to have an impact there. |
| The list of lenders signed up to the scheme include Santander, Nationwide and Barclays, but it is not clear how much – if any – each has drawn from the BoE. | The list of lenders signed up to the scheme include Santander, Nationwide and Barclays, but it is not clear how much – if any – each has drawn from the BoE. |
| Jonathan Harris, director of mortgage broker Anderson Harris, said: "This data has been eagerly awaited to see what impact the Bank's £80bn Funding for Lending scheme is having. The answer: not a lot. | Jonathan Harris, director of mortgage broker Anderson Harris, said: "This data has been eagerly awaited to see what impact the Bank's £80bn Funding for Lending scheme is having. The answer: not a lot. |
| "A decline in lending in August doesn't sound too positive and doesn't tally with a recent BoE survey where lenders claimed the scheme was helping boost lending to individuals and households." | "A decline in lending in August doesn't sound too positive and doesn't tally with a recent BoE survey where lenders claimed the scheme was helping boost lending to individuals and households." |
| Harris said there was currently little to convince would-be buyers to enter the market. "Only more mortgage deals at higher loan-to-values with better rates might help unlock that group of people who would like to buy but are struggling to do so," he said. | Harris said there was currently little to convince would-be buyers to enter the market. "Only more mortgage deals at higher loan-to-values with better rates might help unlock that group of people who would like to buy but are struggling to do so," he said. |
| "If lenders don't use cheap funds from the Funding for Lending scheme to target this group, there isn't likely to be much of a positive impact on the housing market." | "If lenders don't use cheap funds from the Funding for Lending scheme to target this group, there isn't likely to be much of a positive impact on the housing market." |
| Meanwhile, the Bank's figures also show other borrowing remained flat over the month. Consumer credit and credit card borrowing rose, but borrowing on loans and overdrafts fell by £0.2bn. | Meanwhile, the Bank's figures also show other borrowing remained flat over the month. Consumer credit and credit card borrowing rose, but borrowing on loans and overdrafts fell by £0.2bn. |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| Yorkshire BS | Yorkshire BS |
| Yorkshire BS | |
| Provided by London & Country for the Guardian | Provided by London & Country for the Guardian |