Monday 18 June 2012

Sir Mervyn King, Bank of England Governor and the Treasury revealed plans to provide high street banks with £80 billion on the condition it is passed on to business and consumers with cheaper mortgages and loans.

The cheap cash loans will be available from this week. High street banks will also be given the capability to switch poor assets such as credit card debt for a six month cash loan.

The new funds are being supplied in addition to the £325 billion the Bank of England has poured into England via quantitative easing measures.

James Cotton, of London and Country Mortgages, noted in the Daily Mail that the announcement could improve lenders’ confidence.

He also commented that: ‘It might help the price of mortgages come down. There might also be a bit more of a choice of mortgages.’

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