Lending scheme (FLS) on business get preference not mortgage borrowers.
Mark Carney, The Bank of England's governor say that supporting mortgage lending was "no longer necessary".
Considering the price rise in many regions he mentioned that an overheated housing market would be a risk to the economy.
Funding for Lending will be refocused on businesses from January 2014, the governor said.
House builders' shares were cascaded by, The Bank of England's move to refocus the Funding for Lending scheme (FLS) on business not mortgage borrowers.
However, speaking about another government-backed scheme, designed to help home buyers, Help To Buy, Mr Carney added that it was "still early days".
Chancellor George Osborne mentioned that "Small firms are the lifeblood of our economy. That's why we're reforming the banks, introducing the employment allowance and now focusing the Funding for Lending Scheme to support them."
Funding for Lending intended to provide up to £60bn to banks and building societies so long as that money was lent to businesses and individuals.
Vince Cable, the Business Secretary told the media that while he believed that the decision to refocus the scheme away from households would improve borrowing prospects for small and medium sized companies, it was "not a silver bullet".
"One decision isn't going to change quite a deep structural problem. But it is certainly a move in the right direction. As far as small businesses are concerned, there are a whole lot of different issues here." He added.
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