Cost.co.uk Responds to Banks Reducing Loans

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Banks are lending less despite receiving funding for loans.

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In total, £80 billion is being made available to banks at reduced rates

According to the BBC, the number of loans being offered by banks has continued to fall in spite of the government plan, Funding for Lending.

The Bank of England has reported that lending fell by more than £2.4 billion in the final quarter of last year even though banks have taken £14 billion from the scheme so far.

A representative from he Bank of England added, ‘FLS should encourage those banks that were planning to reduce their lending to households and companies in aggregate to expand their core lending such that the total is cut back by less than would otherwise have been the case.’

In light of this it is both confusing and worrying that the banks have still continued to lower the amount they lend.

Cost.co.uk is the comparison site dedicated to providing the best offers, deals and money saving tips to consumers based in the UK on a wide range of sectors including insurance, finance, travel and utilities. A representative commented on today’s news, ‘If the banks are receiving help in order to help others it is confusing why this is not happening. In total £80 billion is being made available to banks at reduced rates, but only if they guarantee to lend that money on to Britain’s small and medium sized businesses, as well as individuals.’

Cost.co.uk continues to comment on consumer based news.

Based in Essex, Cost.co.uk is one of the UK’s leading price comparison sites. Allowing their online customer’s access to companies offering a range of insurance, financial and travel services, the firm specialise in providing a personal experience. Founded in 2012, the agency has a trusted reputation for sourcing the most ideal policies at affordable prices.

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Ben Austin
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