Recession and Borrowing

Following the share price collapse on the London Stock Exchange on Monday and the subsequent interest rate cut in America to stave off recession, what is going to be the impact on homeowners and those who wish to take out secured loans against their assets this year?

It may not be all bad news! As already seen in the US, interest rates are forecast to fall with commentators already predicting they will fall to around 4.5% by the end of the year. In addition it would appear that UK plc and the general public at large are already tightening belts and reducing consumer spending which helps the debt crisis.

The bad news is however, that a recession should it manifest itself usually translates into fewer jobs and falling house prices, which is a huge problem for both business and the economy.