This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7328031.stm
The article has changed 6 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Mortgage squeeze 'to get worse' | Mortgage squeeze 'to get worse' |
(10 minutes later) | |
The squeeze on the availability of mortgages is expected to continue in the next three months, the Bank of England has warned. | The squeeze on the availability of mortgages is expected to continue in the next three months, the Bank of England has warned. |
But it also predicted that demand for home loans was likely to fall slightly during the same period. | But it also predicted that demand for home loans was likely to fall slightly during the same period. |
The Bank, in its Credit Conditions Survey, said lenders expected the rate of homeowners defaulting to rise. | The Bank, in its Credit Conditions Survey, said lenders expected the rate of homeowners defaulting to rise. |
Mortgage lenders have been raising the cost and availability of mortgages in recent days owing to the credit crunch. | Mortgage lenders have been raising the cost and availability of mortgages in recent days owing to the credit crunch. |
Survey's finding | |
The survey confirmed that lenders had reduced the availability of mortgages in the three months to mid-March and "expected a slightly larger reduction" over the next three months. | |
But lenders are also expected to cut the amount of ordinary loans, not secured against property, in the next three months. | |
Small businesses were also expected to feel the squeeze, with a slightly smaller fall in corporate credit on offer. | |
Vicky Redwood, of Capital Economics, said the evidence increased the chances of the Bank's Monetary Policy Committee cutting interest rates next time. | |
"The outlook for economic growth has deteriorated enough to prompt a rate cut next week," she said. |