Thursday, April 03, 2008

Mortgage Famine

The Bank of England's Credit Conditions survey predicts that we are in for something of a mortgage famine as banks and building societies withdraw more home loan offers, as demonstrated by First Direct pulling offers to new customers.

Banks are also going to increase the margin over base rate they charge mortgage borrowers, offsetting the benefit of any potential cut in base rate.

Unsecured credit will also be cut back.

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