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| Version 0 | Version 1 |
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| BoE reduces mortgage lending support scheme | BoE reduces mortgage lending support scheme |
| (35 minutes later) | |
| The Bank of England is to scale back a scheme to boost mortgage loans, focusing instead on business lending. | The Bank of England is to scale back a scheme to boost mortgage loans, focusing instead on business lending. |
| The Funding for Lending Scheme, launched last year, will no longer be aimed at householders, said the Bank's governor Mark Carney on Thursday. | The Funding for Lending Scheme, launched last year, will no longer be aimed at householders, said the Bank's governor Mark Carney on Thursday. |
| An overheated housing market would be a risk to the economy, he said, presenting the Bank's Financial Stability Report. | An overheated housing market would be a risk to the economy, he said, presenting the Bank's Financial Stability Report. |
| Supporting mortgage lending was "no longer necessary". | Supporting mortgage lending was "no longer necessary". |
| However, speaking about another mortgage scheme, Help To Buy, Mr Carney added that it was "still early days". | |
| Funding for Lending will be refocused on businesses from January 2014, the governor said. | |
| Chancellor George Osborne said: "Small firms are the lifeblood of our economy. That's why we're reforming the banks, introducing the employment allowance and now focusing the Funding for Lending Scheme to support them." | |
| Housing bubble? | |
| Funding for Lending aimed to provide up to £60bn to banks and building societies so long as that money was lent to businesses and individuals. | |
| Mr Carney said: "The changes announced today refocus the Funding for Lending scheme where it is most needed - to underpin the supply of credit to small businesses over the next year - without providing further broad support to household lending that is no longer needed." | |
| Mr Carney added that he sees a higher risk to financial stability if there are further rapid rises in house prices, and there were signs of house price growth picking up beyond London. | Mr Carney added that he sees a higher risk to financial stability if there are further rapid rises in house prices, and there were signs of house price growth picking up beyond London. |
| Concerns over a potential property market bubble have been growing, and earlier this month a committee of MPs asked the Bank of England to clarify its role in policing the Help to Buy scheme. | |
| The Treasury Committee said that the "scope and limits" of the Bank's role were not clear. |