http://news.bbc.co.uk/1/hi/business/7120460.stm
Mortgage lenders have made a plea for the Bank of England to cut interest rates to shore up their finances.
The latest report from the Council of Mortgage Lenders (CML) warns that, "funding pressures have started to crystallise for a number of lenders".
It says their ability to borrow from other financial institutions is getting worse, not better.
The CML calls on the Bank of England to cut interest rates sooner rather than later.
If that gap cannot be made up by lenders borrowing in the wholesale markets then the mortgage tap may be turned off.
"Firms have various other options, including the ability to influence the volumes of new lending business they write in line with their funding pipeline," said the CML.
"But, the overall impact is to limit the availability of mortgage credit and to raise its cost for prospective borrowers," it warned.
But inflation is rocketing. If BoE cut interest rates, we'll just see an even bigger debt bubble form.
Mortgage lenders have made a plea for the Bank of England to cut interest rates to shore up their finances.
The latest report from the Council of Mortgage Lenders (CML) warns that, "funding pressures have started to crystallise for a number of lenders".
It says their ability to borrow from other financial institutions is getting worse, not better.
The CML calls on the Bank of England to cut interest rates sooner rather than later.
If that gap cannot be made up by lenders borrowing in the wholesale markets then the mortgage tap may be turned off.
"Firms have various other options, including the ability to influence the volumes of new lending business they write in line with their funding pipeline," said the CML.
"But, the overall impact is to limit the availability of mortgage credit and to raise its cost for prospective borrowers," it warned.
But inflation is rocketing. If BoE cut interest rates, we'll just see an even bigger debt bubble form.
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