Peter Payack Finance

The housing slump could come to an end as early as next year if the cost of home loans were to fall by another half-point, a leading economist has said.

According to David Miles, chief UK economist at Morgan Stanley, if mortgage rates stayed at current levels, house prices could fall by another 5 to 10 per cent before the market ‘bottomed out’ next year.

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Banks’ continued reluctance to lend to each other has seriously restricted the level at which personal loans, mortgages and other forms of credit can be offered, according to the BBC’s business editor Robert Peston.

The LIBOR (London Inter-Bank Offered Rate) is the average rate at which banks lend to one another at any given time. On Wednesday the ‘three-month sterling’ LIBOR stood at 6.21% – almost 2% higher than the 4.5% base rate – indicating that the Bank of England’s base rate cut, aimed at encouraging more and cheaper loans to consumers, hasn’t had the expected impact.

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Loans from Think Money

Interesting article from Think Money: Where can I find a £5000 loan?

The ramifications of Barclays‘ decision to close down loans provider FirstPlus have been felt by price comparison site Moneysupermarket.
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