FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

What does this mean for mortgage rates?

While many investors thought that we had seen the last of the turmoil in the money markets it has returned like one of those hurricanes circling the US. All liquidity has been hovered up by the storm and traders are literally battening down the hatches to ensure they can restrict the damage to their assets.



As we saw when the initial credit crunch issue hit the market there is no confidence in lending to anyone with many questioning who can actually be regarded as 'Blue Chip' when the likes of Lehman Brothers have bitten the dust. What little liquidity there is in the market is now available at sky high rates which will ensure that the flow of mortgage finance is disrupted yet again - what little mortgage finance available will be at significantly higher rates than those quoted just 24 hours ago.



This in turn will see the housing market fall yet further with more and more desperate sellers set to come out of the woodwork. Buyers will likely go on strike (those that have liquidity available) and be able to pick and choose the price they want to pay for properties up for sale. There has been no official word from the government, although the Bank of England has been pumping liquidity into the market to the tune of £5 billion today.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue