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Friday, 01 August 2014

Mutual confident on lending

FURNESS Building Society is confident the refocusing of the Bank of England’s Funding for Lending scheme away from mortgages will not affect its ability to remain competitive in the market.

S92372Bds
MARTIN CUTBILL

The scheme provided banks and other financial institutions with extra funds to encourage more competitive lending for mortgages and businesses.

However, banks have reduced their mortgage lending under the scheme and the mortgage element will cease from January to allow the FLS money to be used mainly to help fund small business expansion.

However, Furness Building Society did not use the Funding for Lending facility and has still maintained its position as one of the UK’s top mortgage providers, winning the Best Regional Building Society award from Mortgage Finance Gazette.

Furness sales and marketing director Martin Cutbill said: “As a mutual we have maintained our traditional model of relying on the savings of our members to underpin the bulk of our lending on mortgages.

“The fact that we won the awards for our price competitiveness shows we were not dependent on FLS, and we will continue to operate our successful model of providing a safe haven for customers’ savings and offering very competitive mortgages.”

Paul Broadhead, head of mortgage policy at the Building Societies Association, said: “The latest figures show that mutuals have out-performed banks and other lenders in terms of the amount of net lending since the scheme was introduced.”

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