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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."

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

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Housebuilding companies suffer big falls in share prices

ITV News Economics Editor Richard Edgar has tweeted:

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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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.