 |
|
|
||
|
|
|
Loans from First DirectFirst Direct is part of HSBC, one of the largest banks in the UK. First Direct stopped selling home loans to consumers for six weeks, but they announced First Direct would be selling loans again to new consumers. When loans started being removed from the market due to the credit crunch, First Direct had so many applications for new loans they decided to stop offering any loans for the six weeks. Halifax on the other hand is one of the bigger lenders who decided to cut the interest rates on their loans in order to offer consumers a product that they might be able to afford. According to the information Halifax has reduced their interest rates by .15 percent. However, this reduction is only for the consumers looking to refinance their current loans. Abbey and Nationwide, two other very large banks in the UK, decided to make a small cut in their interest rates as well. Analyst and economists are taking this as a sign that the loan market is now getting back on track. While the credit crunch did cause the banks and building societies to take loans away, it seems they are now confident enough to start lending money again. The interest rate reductions are on the primary and intermediary branches where they are offering a range of products again. The prices have been small, but the banks feel it is enough to make the consumers comfortable again in getting a loan. First Direct since they removed their products from the market have a huge back log of loan applications to get through. Part of the reason for taking their products off the market was so they could get through the loan applications they already had. It took about three months, but they have been able to make decisions on the loan applications so that the consumers can finally learn what they may be awarded or what has been declined. HSBC during that time has been taking several loan products that they can offer and awarding them through a rate match offer. It is an option for consumers to try and get business away from Northern Rock or other lenders in an attempt to get more business. The rate match is for the fixed rate loans that are going to expire in the next couple of months. The deal is going to last through June. The credit crunch did affect a lot of banks so that they made few decisions on loans for the positive outcome. For most of the banks a consumer is going to see higher interest rates and a need for 10 percent of the house price. The Bank of England has tried to make the situation a little better by reducing the base interest rate for the banks, but some of this savings is not being passed on. There are also some very special products for commercial banks to give special loans. We know the credit crunch is not over yet, but it seems it is on its way to being repaired. The Royal Institution of Chartered Surveyors is still warning that housing prices may drop or at least become flat. This means sellers are not getting the money they need out of their homes, but it makes it easier for the buyers to purchase. Back To Financial News June 2008 100 Percent Mortgages |
|
Home | Contact | About Us | Terms and Conditions | Privacy Policy | Sitemap Credit Cards | Loans | Business Finance | Insurance | Debt Solutions | PPI | Bank Accounts | Financial Information |