Are you finding difficult to raise finance in the current climate?
It has become increasingly difficult for consumers to take out mortgages, unsecured loans and credit cards. This is having an effect on the housing market as first time buyers are also unable to access mortgages.
The credit crunch is also having an effect on the average family, pushing up the cost of remortgaging. This having a knock on effect on high st spending. Many retailers are predicting a gloomy 2008.
What is anybody doing about it?
Well the Bank of England is set to launch a plan which it hopes will start to ease the credit crisis. The bank has announced plans to allow UK banks the ability to swap mortgage assets for government bonds. The bank expects around £50 billion of the bonds to be handed out.
This scheme should allow the mortgage market to free up liquidity and get banks lending to each other again.