Britain scales back loan program

Save Story
Leer en EspaƱol

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

LONDON (AP) - The Bank of England has scaled back a loan program meant to spur economic recovery, amid fears that cheap mortgages could inflate a housing bubble.

The Fund for Lending program was launched in June last year by the bank together with the Treasury to help homes and businesses emerge from the crisis. But starting in January, the plan, which offers cheap finance to banks to encourage lending, will only be available to small- and medium-sized businesses.

Property prices have gathered momentum since the plan was announced, with average prices rising 6.8 percent in the year to October.

Bank of England Governor Mark Carney says that acting now reduces the likelihood of larger interventions later. While he didn't see any immediate threat, he says the `'concern is where this could go."

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Most recent Business stories

Related topics



Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the Trending 5.
By subscribing, you acknowledge and agree to's Terms of Use and Privacy Policy.

KSL Weather Forecast