Tuesday, March 18, 2008
Bear Stearns’ collapse means you can’t get a mortgage
The collapse of Bear Stearns had a predictable impact on stock markets across the world yesterday. But few suffered as badly as the UK market - British banks took a pounding once again. The Bank of England auctioned off £5bn of short-term loans yesterday, but banks requested almost five times that amount. The move came as the inter-bank lending rate spiked up to 5.59%, in the largest rise in three months. Meanwhile, mortgage rate increases and product withdrawals make a mockery of all the feeble articles being printed in the weekend property supplements about ‘a spring recovery’ in the property market. Banks in the UK are already suffering. What will happen when the UK housing crash gets fully underway?