The construction industry is now feeling the pain of the liquidity crisis as Persimmon the UK's largest house builder announced this week that it intends to stop building new sites until the outlook for the economy improves. This is likely to be the tip of the iceberg as more builders follow suite. This is likely to cause problems for the…
Author: Scott Morrissey
The threat of inflation
With the threat of rising inflation looming over the UK at the moment, now is a good time to get an understanding of the problems facing the Bank of England. Firstly what is inflation? Inflation is a rise in the general level of prices over time. It may also refer to a rise in the prices of a specific set…
Calls for changes on state aid for mortgage debt
The Council of Mortgage Lenders (CML) has called on the government to change the way the state helps those who incur mortgage arrears on their mortgage due to unemployment. With the current economic situation there is a possibility we will see rising unemployment over the next 12 months. The CML say hat the current situation is unacceptable as it takes…
Mortgage lenders to help people in arrears
Further to a meeting which took place today between the chancellor of the exchequer and UK mortgage lenders there could be help going forward for families struggling with their mortgage payments. The topic of conversation was to talk about ways of minimising the effect of the liquidity crisis on already hard hit borrowers. The lenders have committed to review their…
Are you finding it difficult to raise finance?
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…
Commercial Lending
The commercial mortgage market has changed significantly since the beginning of this year. This is mainly due to the ongoing liquidity crisis in the global market which is having an effect on the confidence of lenders and investors. Many of the large commercial lenders in the UK relied on the wholesale and securitisation markets to obtain funding for new business.…
Plan to ease the credit crunch
The final stages of a plan to ease the credit crunch are being worked on by the Bank of England. The details will need to be backed by the treasury but it is believed that this will not be an issue. The plan is to allow banks to swap their mortgage assets for government bonds for a period of time.…
Bank of England to act on mortgage crisis
The Bank of England is waiting for the government approval to take over mortgage loans that are sat on lenders' balance sheets, in order to increase liquidity in the money markets. The Bank of England would grant government bonds in exchange for securities backed by UK mortgages. This move would be welcomed as it would address the reluctance among mortgage…
Government meet lenders to try and resolve crisis
The chief executives of the major high st banks as well as senior investment bankers have been invited to Downing St today to meet Gordon Brown and discuss possible solutions to the current credit crisis. The banks will be asking the prime minister to free up the money markets to ease the liquidity crisis and stave off any further damage…
The Mortgage Finance Working Group
At long last there seems to be an effort to resolve the current credit crisis. This is a bold statement and perhaps comes 8 months to late but nevertheless would seem to be good news. A permanent cloud has been hanging over the mortgage market since August last year and it now looks like there are signs the government have…