03.10.2008 - Bank warns of rising loan defaults as house prices fall
From Guardian: The Bank of England warned of rising defaults on loans amid signs that a worsening credit crunch is prompting sharp falls in house prices and a squeeze on consumer spending power. In a quarterly health check of credit conditions conducted before the recent market turmoil, Threadneedle Street said lenders had reduced the availability of credit by more than had been expected and anticipated an even tougher environment in the next three months. The report which fanned City speculation about a cut in interest rates next week coincided with a report from the Nationwide showing that house prices dropped by 1.7% in September - the 11th successive monthly fall..... Full Article: Source
Print