Latest News
The Credit Crunch: Is this the beginning of the end?
This week saw the 12 consecutive day that the LIBOR rate of inter-bank borrowing has fallen. Unlike the bank base rate, which is set by the Bank of England, the LIBOR rate is set by the demand and supply of money as banks lend to each other to balance their books on a daily basis. The fall should have a knock on effect for home owners and investors hoping to find good mortgage deals.
Tony Rice, of Bedford-based specialist mortgage brokers TMP Mortgage Zone, said: "The fall in the LIBOR rate shows that the freeze in lending between banks is starting to thaw. The massive amount of cash that the UK government has pumped into the financial system in the past couple of weeks has given banks the confidence to start lending to each other again. This should boost competition in the market with banks launching competitive mortgage deals again to attract new business."
[ 31-10-2008 ]
