How Long Will Credit Crisis Last?

May 30th, 2008 | credit, uk housing market-

Recent data suggested that the credit crunch may last longer than people thought (or hoped)

The cost of borrowing wholesale money over two years has increased to over 6%. 1% higher than base rates. This is the biggest spread for almost 4 years and a sign of the shortage of liquidity and reluctance to lend

This increase in two year interest rates will directly affect the cost of fixed rate mortgages. Banks will also be forced to continue rationing mortgages and mortgage products for the foreseeable future.

See: Credit Crunch explained

Credit Crisis 2008

Understanding subprime crisis

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