Credit crunch in the uk
Credit Crunch Explained:
In the Summer last year the credit markets started to get worried about the fall-out from the sub-prime market in the US. Most of these sub-prime mortgage were packaged up and then sold on as structured products to financial institutions such as banks, insurers and hedge funds. Now the holders of these structured products are suffering large losses because there is a rise in mortgage arrears with these sub-prime loans.This has happened because in the US, interest rates are rising, house prices are falling and people can't refinance as quickly as first thought. The way this works, is that the banks will initially provide a bridging loan type of financing, but then ultimately look to syndicate the debt away to other banks or hedge funds. We have all seen what happened to Northern Rock last year and now Lenders are even more cautious in the uk to lend new mortgages to consumers. Mortgage help centre http://www.mortgage-help-centre.co.uk are here to help people through the credit crunch in the uk.
We want to help people find the best rates in the uk for mortgages and loans.
The U.K.’s credit crisis is entering its final stages, but it is likely to take a while for the property market to return to normal, according to Financial Services Authority Chief Executive Hector Sants. The UK Credit Crunch is here and it has come swiftly. Of course there were many predictions that the housing bubble and the false econmy created by both high house prices and the easy lending policies of most banks and building societies would end in tears. And whilst the expectation never materialised the pre-credit-crunch dangers continued to balloon.