Bank of England credit conditions report
Credit Conditions Report The Bank of England has today released the latest edition of it’s Credit Conditions Report.
The report suggests that homeowners and borrowers will find it increasingly difficult over the coming 3 to 6 months to obtain credit. Lenders are already tightening their lending criteria specifically woth regards to unsecured loans, credit cards and secured loans.
As for the mortgage market, every day a lender will annouce that they are withdrawing products or increasing interest rates on specific products in order to reduce customer interest. Some lenders are even withdrawing products with only a few hours notice.
The recent slow period in the housing market means that demand has dropped for new mortgages but that leaves little to comfort the 1.5 million remortgagers of 2008 who are now trying to pick their way through the mortgage market maze amongst product withdrawals and rate increases being imposed by lenders. Click here to compare mortgages now.
These credit conditions mean that the Bank of England could well be thinking about reducing interest rates again next Thursday, possibly by 0.25 per cent, down to 5 per cent.
Of course this doesn’t mean that lenders will automatically pass the rate cuts back to borrowers by reducing mortgage rates. I think it may help stop lenders from increasing their rates even further but we;ll have to wait and see….