Wednesday, October 8, 2014
Mortgage Crunch 2.0
MMR causes amount of credit available from banks to drop like a stone, Lenders also spooked by property price outlook, Credit card borrowing increases for the first time in nine months. Its Credit Conditions survey of lenders between June and September recorded the largest fall in the amount of credit they were able to supply since the end of 2008, when Lehman Brothers collapsed. The tightening in lending was largely due to banks' reduced risk appetite and concerns about the outlook for house prices, the Bank of England suggested. Yesterday, a report by the Centre for Economics and Business Research predicted that property values will fall next year.