Bank criticised over credit crunch says National Homebuyers
The Bank of England has been criticised for its handling of the credit crunch and potentially causing more people to seek a fast property sale.
[UKPRwire, Wed Apr 23 2008] Steven Bell, chief economist at GLC, told BBC Radio Four that the Bank could have done more to help ease the problems in the financial markets.
Had action been taken, mortgage lenders may not have begun pulling out of the market as they have been and potentially fewer buyers would be seeking a fast property sale.
"Since August when [interest] rates have been cut twice, mortgage rates have basically not fallen. It's even worse than that; you can't get a mortgage from lenders unless you've got better credit terms," said Mr Bell.
"So they are withdrawing, and that means on interest rates the Bank of England can do two things; one is cut rates and the other one, which they haven't done enough of in my opinion, is ease this liquidity crisis that we keep hearing about," he added.
Fast property sale expert Julian King adds, "I expect the Treasury to step-in and start to resolve the situation, but this will require some amendments in the lending criteria by the banks.
"People who need a fast property sale to avoid repossession or amassing further financial difficulty should consider a quick sale from a reputable national homebuyer".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm. The company is also the UK leader in Sell and Rent Back products where the homeowner can sell property quickly to release cash, but remain living in their home.
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