New year is unlikely to see an end to credit crunch effect
February 8, 2008
Since summer of this year both consumers and industries in the UK have suffered as a result of the credit crunch that has swept across from the Atlantic, where it was sparked in the sub-prime sector of the US mortgage market. The effects of the credit crunch have been profound and damaging, and there have been some high profile victims, including the stricken bank Northern Rock. However, for those that thought that the problems were set to die down as the New Year dawned the news is not good.
Over recent weeks there has been more bad news from the United States, which is again likely to impact upon the effects of the global credit crunch. House prices in North America are plummeting faster than ever according to reports, having fallen for ten months in a row. House prices in October alone fell by 6.7%. Foreclosure levels have been rocketing since the credit crunch took hold, which has seen a combination of more properties on the market and lower prices.
Financial markets in all sectors have been affected by the credit crunch, and amongst the problems that have been caused by these credit problems are increased difficulties for consumers looking for credit, higher fees charged on inter-bank lending, which has decreased liquidity, and a variety of other problems that have caused chaos in the money markets. Judging by information in recent reports this chaos could continue for some time to come.
In the meantime a number of central banks across the world, including the Bank of England and the US Federal Reserve, have joined forces in order to inject billions of pounds into the money markets in order to increase liquidity.
- Lack of first time buyers severely affecting rest of housing market The housing and mortgage markets have both been experiencing immense difficulties over recent months, with the onset of the global credit crunch last summer having a profound adverse effect in the money markets, and this
- Turmoil in financial markets to affect the UK The current turmoil in the financial markets, which was sparked in the sub-prime sector in the United States, is already having and will continue to have an adverse effect throughout the UK according to one
- Could you pick up a property bargain at auction? As most people are only too well aware the prospect of being able to afford a property these days is very bleak, even thought property prices are falling, as they have been for the past
- Consumers warned to be careful about doorstep lenders It seems that some doorstep lenders are enjoying a healthy year this year, as the global credit crunch continues to take its toll on households, and an increasing number of consumers, such as those with
- Could stamp duty relief help to boost the housing market? Over the past few months the housing slump in the UK seems to have become more and more pronounced, with estate agents unable to shift many of the properties on their books and with sellers
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[...] addition to this the lack of availability and affordability of mortgages that has stemmed from the global credit crunch means that many people that may have been intending to buy a home can no longer do so. This has [...]