A little tidbit of info about the Government's upcoming Asset Protection Scheme which will guarantee losses on loans for Royal Bank of Scotland and Lloyds Banking Group, including a big chunk of their combined £97bn of UK commercial property loans.
I understand that once the scheme is up and running later this year, you the borrower will never know if your loan is covered by the scheme or not. That shouldn't really make much of a difference, seeing that the bank should still be aiming to minimise its losses, and that should involve working with the borrower.
But since one investor told me earlier this year they think they had the plug pulled on them because they because their loan was heading for the APS, some people might be a bit uneasy at the thought of being part of the scheme and not knowing about it.
