Thursday 28 November 2013 5:36 am

Funding for Lending Scheme to be scrapped for mortgages as UK house prices soar

The Bank of England is to end Funding for Lending Scheme (FLS) mortgage incentives as the UK housing market strengthens. UK house prices grew by 13.4 per cent in the two years from October 2011.

So FLS is just available for business from next year. There's a strange juxtaposition here – The Bank is taking its foot off the pedal just as the Help to Buy scheme has gone into play.

There's little evidence of an immediate threat to stability from the housing sector though, says the Bank. But "risks may grow if stronger activity is accompanied by further substantial and rapid increases in house prices".