The Bank of England recently announced it is to introduce an £80 billion pound ‘Funding for Lending’ scheme, which aims to make loans available to mortgage hunters and businesses across the country. The new low-interest funds will be made available to British banks with the intention that those funds are put on offer to the public and companies of all sizes – although particularly small and medium ones – in order for them to invest and expand.
But perhaps the biggest aim of the scheme is to release more cash into businesses so that they can take on more staff.
Banks, which have generally been reluctant to lend money since the financial crisis, will be incentivised to lend more – because the more they lend under the scheme, the lower the borrowing costs to them. Ultimately, this measure is aimed at un-clogging the credit system, which, as far as the government is concerned, is impeding the economic recovery of the nation.
As a landlord, this is good news too. Investing and maintaining buildings can be expensive, and if you rent your property out and wish to expand your operation, the Funding for Lending scheme may be just what you need. With rising fuel costs and tax increases, together with paying for other essentials such as property insurance, the new initiative is sure to prove popular with a great many people, both privately and commercially.