Bank of England terminates mortgage support
The Bank of England (BoE) moved to head off the UK's escalating house prices today as it unveiled an array of new policies headlined by the withdrawal of subsidised funding for banks' mortgage lending.
The central bank and UK Treasury will channel the entirety of their Funding for Lending Scheme (FLS) toward lending to businesses – predominantly small- and medium-sized enterprises (SMEs) – as of 2014. Banks will no longer be able to secure cheap funding by expanding their mortgage portfolios.
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