The Credit Crunch - a Quick Update

By: David Lynes

The global credit crunch that has affected the UK and various other countries had taken effect in many ways over recent months. This was sparked in the sub-prime mortgage sector of the United States, where bad mortgage make up a large percentage of overall mortgages taken out. This in the UK has seen many effects that you might otherwise put down to something else. Still, there are a number of bad credit lenders and brokers that are in operation and are able to provide you with affordable and great quality loans and credit cards, even for those with a poor rating.

This has had an adverse effect in many areas of the financial markets over recent months, and has led to many lenders and other financial institutions having to really tighten their lending criteria. These days, following the onset of the credit crunch, lenders are far more strict with regards to who they will lend money to, and therefore getting finance in this economic climate can be difficult.

It is not just the consumer that has been affected by them a bit also a number of lenders, who have found themselves quickly losing business. One of the major victims of it has been Northern Rock, which found itself at the centre of turmoil recently following the need to approach the Bank of England for emergency funding. Some other mortgage lenders have also lost out, with some having to cut the services and products that they offer and some even going into administration.

Consumers have also suffered as a result of the crunch, and over the past few weeks being bale to get finance and credit has become increasingly more difficult for consumers. Many have found that they are now unable to get the credit they need, with bad customer taking the biggest hit in terms of consumers that are struggling to get any sort of finance. Mot sectors of the financial market have been affected by it, and even the Bank of England is awaiting signs of further effects of this credit crunch before taking any action with the base interest rate, which has remained on hold since July of this year.

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