04-01-2008
Bank report indicates rise in mortgage defaults
The Bank of England has indicated that the number of mortgage defaults in the UK is likely to rise.
Data released by the Bank, as part of its quarterly survey of credit conditions, hypothesises that over the forthcoming quarter, the number of mortgage defaults is likely to increase.
"The significant tightening of credit conditions for both households and corporates in the fourth quarter of 2007, and the expected continuation of these trends in the first quarter of 2008, increases pressure on the Bank of England to trim interest rates again sooner rather than later," said analysts at Global Insight.
The survey also found that secured household lending by banks has reduced significantly, a trend which occurred during the latter months of 2007.
Global Insight believes that interest rates could this month be reduced to 5.25 per cent, with further reductions to follow.
In related economic news, the UK's rate of inflation is above target at 2.1 per cent.
