Chief Secretary to the Treasury, Danny Alexander, has announced that the major UK banks will reveal details from January of their lending in thousands of local areas. The Treasury believes that it will help encourage competition by helping smaller lenders to identify gaps in the market and lure other lenders to the shunned areas. The increase in lenders should then allow for an increase in credit to homeowners and small businesses in those areas.The lending data will approximately cover 10,000 postcode areas across the UK and will be provided voluntarily by Royal Bank of Scotland, Lloyds Banking Group, HSBC, Barclays, Santander UK, Nationwide, and Yorkshire and Clydesdale Banks. The data will then be published on a quarterly basis by the British Bankers’ Association (BBA) and the Council of Mortgage Lenders. Mr Alexander said “It is a major step forward in terms of transparency and should encourage competition by helping smaller lenders to identify gaps in the market and allowing businesses to hold their local bank to account where they aren’t lending.”
The local data will also be provided on mortgage lending and personal loans and the government expects more lenders to sign up including credit unions over time.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with debt recovery solicitors in Farnham and across the country.