Friday, November 4, 2011
For how long?
Falling house prices and low interest rates have combined to keep corporate and individual insolvencies lower than expected, according to leading accountants. â€œWith all the doom and gloom in the headlines, you might be surprised to hear that our insolvency department is not that busy,â€ said Mike Warburton of Grant Thornton. He added: â€œLow interest rates reduce the pressure on banks and other lenders to act quickly to prevent debts growing larger and limit their losses. â€œAt the same time, the weak housing market and difficulties in obtaining mortgages mean it is hard to sell houses, which are most debtorsâ€™ major asset; another reason for lenders to hold fire.