The Debt Crisis Continues

Figures recently released by the Bank of England show that the number of mortgage approvals has hit a 2 year low. It is thought that a number of factors have contributed to this including interest rate rise over the course of 2007 coupled with the Home Information Packs which has appeared to reduce the number of houses for sale, sky high house prices and stricter lending criteria by the banks and building societies as a result of the credit crunch.

Despite this, consumer debt rose again last month even taking into account the credit squeeze! It is suspected that the public are continuing to increase their borrowings on credit cards and personal loans. The worry is that this trend will continue with Christmas fast approaching.