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Cable: Funding for Lending decision 'good and timely'

Business Secretary Vince Cable told ITV News the Bank of England's decision to stop the Funding for Lending scheme for households was "good and timely".

Mr Cable said ending the policy which helped lower mortgage rates would "deflate this emerging boom in house prices, particularly in London and the South East that could create the old-fashioned boom and bust cycle."

Read: BoE ending policy which helped lower mortgage rates

Council of Mortgage Lenders: FLS changes 'not a shock'

Although the changes to the FLS may be a surprise, they are not a shock.

Mortgage lenders are well equipped to meet their funding needs, as wholesale funding market conditions have improved and retail deposits are robust.

– The Council of Mortgage Lenders director general Paul Smee

Read: BoE ending policy which helped lower mortgage rates

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Housebuilding companies suffer big falls in share prices

ITV News Economics Editor Richard Edgar has tweeted:

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Wow - big falls in the share prices of housebuilding companies like Persimmon and Barratt as BoE ends FLS cheap funding for mortgages.

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Carney: "it's no longer appropriate to have our foot on the accelerator, we're shifting into neutral" - on changes to FLS

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To put all this into context, Carney says FLS contributed to a fall of about 1.25% points on mortgage costs over past year and a half.

Read: BoE ending policy which helped lower mortgage rates

BoE governor in no rush to call for an end to Help to Buy

ITV News Economics Editor Richard Edgar has tweeted:

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Carney announces new tool to manage lending by varying affordability tests for mortgages - ie loan to income ratio.

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Carney says worried about the path house prices would take without this action. Essentially 'a stitch in time saves nine.' But cd do more...

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Carney in no rush to call for an end to Help to Buy - says "it's very early days" but may step in "at any time" if he thinks it's a problem

Read: BoE ending policy which helped lower mortgage rates

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Banks offer fewer loans despite Funding for Lending

The Bank of England has announced that the number of loans being offered by banks have fallen, in spite of the Funding for Lending Scheme (FLS).

Net lending by scheme participants was down £2.4bn in the final quarter of 2012. The scheme - a joint effort between the government and the banks to increase lending to both individuals and businesses - was launched last August.

Read: How will 'Funding for Lending' make a difference?

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