These lenders join the 13 already participating in the scheme, a boost which is a good omen for lending next year, and taking the total to 30 participants, 17 of which are building societies.
The Bank will publish data quarterly, showing for each group participating in the FLS the amount borrowed from the Bank, the net quarterly flows of lending to UK households and firms, and the stock of loans as at 30 June 2012.
The 17 new lenders to have signed up to the FLS are: Arbuthnot Latham, Cambridge Building Society, Clydesdale, Co-operative, Coventry Building Society, Cumberland Building Society, Julian Hodge Bank, Manchester Building Society, Mansfield Building Society, Market Harborough Building Society, Metro Bank, Newbury Building Society, Newcastle Building Society, Nottingham Building Society, Skipton Building Society, Tesco Bank and West Bromwich Building Society.
IMLA executive director Peter Williams says:
“Despite a slow start, since its launch in August there are now 30 lenders signed up to the FLS scheme, and more than half of these are building societies. The Bank of England is clearly keen to make the FLS as inclusive as possible and IMLA is hoping it will decide to widen its remit to include non-banks very soon.
“The FLS is unlikely to make a significant impact on lending volumes until 2013 and to date it has only had limited effects on volumes and pricing, but this will build up over time. IMLA has been very concerned that lending in 2012 and 2013 would remain well below market needs, given the pressures on lenders flowing from tighter regulation, more demanding capital requirements, and the costs of raising funds from the retail market. However, the FLS will help ease this and it has also been a factor in allowing a wider spread of lenders to raise funds in the securitisation market."
Brian Murphy, head of Lending at Mortgage Advice Bureau said:
"With 30 lenders now signed up to the Funding for Lending Scheme it bodes well lending levels for next year. It’s too early to start talking about the scale of the impact but we have noticed that pricing has been moving downwards recently. Next year we expect to see this filter through to market more clearly and for it to make a positive impact on lending levels."
“It is also positive that 17 of the 30 lenders signed up to the scheme are building societies, but to be truly successful it needs to be more inclusive. The Bank of England wants to encourage competition but it needs to make it a level playing field. There are a number of non-banks who have been very supportive of the market, especially in areas of the market that have been starved of funds, but who are ineligible for the FLS. It is not a going to provide a market solution if it is only supporting certain sectors of the market."
